Technical analysis of USD/JPY 06.12.2012
When the price touched the long term descending trend’s line on 15th and 21th of March, it was not able to pass the line. After this, the price started falling which you can see it in the picture. Descend of the prices continued until the transformative line and then it stopped there.
Right now, the descending trend’s line is broken in the daily time frame and the price top of 79.782 is registered and therefore, the warning of the formation of an ascending trend is issued.
There is the possibility of an ascend of the price by considering that an ascending candle is closed on the supportive line and the current ascending cycle of Stoch indicator and the progress of the price toward the descending trend’s line in the weekly chart.
You can see in the 1 and 4 hour time frame a pennant pattern. This pattern is always a pattern which continues the trend and it forms when the market is resting. Right now, the price is falling after reaching the supportive line of the pennant pattern.
Written by the technical team of FxGlory Brokerage