3/03/2008 – USD/JPY – As noted in the Chart of the Day posted last Thursday, a clean and strong breakdown of a minor range consolidation (in dotted yellow) occurred last week within the context of the larger downtrend channel (in red). Following this breakdown, price has plummeted more than 400 pips. At the time of the range break, major support was projected at the bottom line of the large parallel downtrend channel. As of this writing, price action has conformed exceptionally well to this projection. The bottom line of the downtrend channel was respected, as might have been expected, with a clean turn and bounce up ... (full story)