Technical analysis of AUD/JPY dated 03.12.2012
As it was mentioned in the previous analysis of this currency pair dated 5.10.2012, according to the formed signs in the price chart, there was the possibility of ascending of the price which finally happened. The price during its ascending trend could record the top price of 86.414. Right now the price by reaching to the descending trend line (primary) has been stopped and the formation of this top price forms the third point of descending trend line and warns about descending of the price. RSI indicator is in saturation buy area and warns the possibility of decrease of the price according to the next cycle.
The price from 11.11.2012 has experienced the ascending trend without the reformation and by formation of the top price of 86.414 and other signs, generally there is the possibility of price reformation of previous ascends. As it is obvious in the picture below, the price under the middle line of Andrews’ Pitchfork pattern has formed the top price which this technical pattern warns the descending of the price and changing the price direction .Generally according to the formed signs in this currency pair, until the third point of descending trend line is preserved, the price has the potential for decrease and descend.