ZAR/JPY 1H Chart: Approaches channel line
The South African Rand has weakened against the Japanese Yen for the last six weeks—a movement which has been confined in a descending channel. During its last wave up, the pair has formed an ascending wedge.
It is expected that this pattern is breached in this session and, given its bearish characteristics, a breakout is likely to occur to the downside. This scenario would be in line with the senior channel, as the rate is close to reaching its upper boundary.
A significant support is provided by the 55-, 200– and 100-hour SMAs and the weekly PP in the 8.2400/2850 territory. This area could introduce some changes to the aforementioned fall. As a result, the lower channel boundary might not actually be reached, giving the Rand an opportunity to surge.
It is expected that this pattern is breached in this session and, given its bearish characteristics, a breakout is likely to occur to the downside. This scenario would be in line with the senior channel, as the rate is close to reaching its upper boundary.
A significant support is provided by the 55-, 200– and 100-hour SMAs and the weekly PP in the 8.2400/2850 territory. This area could introduce some changes to the aforementioned fall. As a result, the lower channel boundary might not actually be reached, giving the Rand an opportunity to surge.