Patterns: GBP/JPY, AUD/JPY, USD/THB, USD/CNH
|GBP/JPY 4H Chart: Two scenarios likely
The British Pound has declined by 4.93% against the Japanese Yen since September 1. The GBP/JPY currency pair tested the 135.50 level during this week's trading sessions.
All things being equal, the exchange rate could continue to edge lower in a descending channel pattern through the following trading sessions. The potential target for bears would be at the 133.00 area.
On the other hand, the currency exchange rate could make a U-turn from the current price level at 135.78 and target the 138.50 mark during next week's trading sessions.
AUD/JPY 4H Chart: Breakout occurs
The Australian Dollar has declined by 2.71% against the Japanese Yen since September 1. The currency pair breached the lower boundary of an ascending channel pattern at 76.67 on September 16.
Given that a breakout has occurred, bears are likely to pressure the exchange rate lower during the following trading sessions. The potential target for bearish traders would be at the 75.50 level.
However, the monthly support level at 75.98 could provide support for the AUD/JPY currency exchange rate within this week's trading sessions.
USD/THB 4H Chart: Symmetrical triangle pattern in sight
The USD/THB exchange rate has been trading within a symmetrical triangle pattern since the end of June.
From a theoretical perspective, it is likely that the currency pair could consolidate within the given pattern until the second half of October.
In the meantime, note that the exchange rate is pressured by the 55-, 100– and 200-period moving averages in the 31.24/31.33 area. Thus, a breakout south could occur in the nearest future. In this case the rate could face the support level—the monthly S1 at 30.81.
USD/CNH 4H Chart: Short-term decline expected
Since the end of July, the USD/CNH currency pair has been depreciating, guided by a descending trend line.
From a theoretical point of view, it is likely that some downside potential could continue to prevail in the market in the medium term. In this case the exchange rate could gain support from the Fibo 61.80% at 6.6069.
If the given support level holds, it is likely that the currency pair could reverse north and target the Fibo 23.60% located at 6.9733.
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