Technical analysis of USD/JPY dated 30.05.2013
USD/JPY since 23.09.2012 till now was in a strong and consistent uptrend that buyers were successful in achieving the highest price of 103.675. As it is obvious in the picture below, price has been stopped from more ascending by reaching to the resistance line of ( alterant level) made of two bottom prices and also Fibonacci resistance level of 38.2 and by closing the weakly candle as descending candle, the peak price of 103.675 has been recorded. Right now price in daily time frame and 4H time frame is closed under 5-day moving average and warns about descending of the price during the next candles.
According to the strong and consistent uptrend, Stoch indicator is in saturation buy area and in divergence mode with the price chart that confirms the created top price and warns about the potential of changing price direction. Currently breaking the supportive level of 100.657 is the first warning for descending of the price. Generally according to the technical signs in the price chart, until the top price of 103.675 is preserved; there is the potential for descending and price reformation in this currency pair.
FxGlory
2013.05.30