SGD/JPY today broke down through the support trendline of the High Quality daily Pennant identified by Autochartist.
Autochartist rates the Quality of this Pennant at the 9 bar level as a consequence of the sharp Initial Trend (rated at the maximum 10 bar level) and near maximum Uniformity and Clarity (both rated at the 8 bar level). This Pennant continues the predominant downtrend visible on the weekly SGD/JPY charts and follows the previous strong downward price impulse (maximum Initial Trend reflects its strength) from the resistance trendline of the weekly downward price channel which started at the powerful resistance level 69.00 (previous major support which reversed SGD/JPY in the first half of 2008).
Autochartist rates the strength of this Breakout at the highest 10 bar level – which heightens the probability that this currency pair will decline further to the Forecast Price 60.84.
The weekly chart SGD/JPY below demonstrates the aforementioned technical levels:
