Technical analysis of USD/JPY
The currency pair of USD/JPY is currently in a descending trend and the market is in the hand of sellers. From 21st of March when this descending trend begun, the price of this currency pair was located in a descending channel and several warning were issued aboutcreation of top price and bottom price which you can see in the following picture.
Right now, in 4h time frame of this currency pair, we can see the formation of hammer candle stick pattern and a reverse hammer pattern which is the reason of formation of the bottom price in this level. The reason of formation of candle stick patterns is the inability of sellers to reach the lower price. There is the possibility of price reformation in its previous descending trend and this means that the seller can make cash their profitable trades.
The RSA indicator is located in the saturation area of selling and issues the warning of an ascending trend even for a short time. The co-occurrence of hammer candle stick, reverse hammer and the indicator’s signal increase the possibility of price’s reformation.
The current most important level of support and resistance:
R= 80.300
S= 79.721
Written by the technical team of FxGlory Brokerage
2012.05.01
The currency pair of USD/JPY is currently in a descending trend and the market is in the hand of sellers. From 21st of March when this descending trend begun, the price of this currency pair was located in a descending channel and several warning were issued aboutcreation of top price and bottom price which you can see in the following picture.
Right now, in 4h time frame of this currency pair, we can see the formation of hammer candle stick pattern and a reverse hammer pattern which is the reason of formation of the bottom price in this level. The reason of formation of candle stick patterns is the inability of sellers to reach the lower price. There is the possibility of price reformation in its previous descending trend and this means that the seller can make cash their profitable trades.
The RSA indicator is located in the saturation area of selling and issues the warning of an ascending trend even for a short time. The co-occurrence of hammer candle stick, reverse hammer and the indicator’s signal increase the possibility of price’s reformation.
The current most important level of support and resistance:
R= 80.300
S= 79.721
Written by the technical team of FxGlory Brokerage
2012.05.01
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