Patterns: SGD/JPY ZAR/JPY
|SGD/JPY 1H Chart: Two scenarios likely
The SGD/JPY currency pair has been trying to surpass the resistance level—the Fibonacci 50.00% retracement at the 82.68 mark.
Two scenarios likely. If given resistance level does not hold, it is likely that the exchange rate go upwards to re-test the upper boundary of a long-term descending channel located circa 83.20. Important level to look out for is the monthly R1 at 83.05.
Otherwise, a reversal south might occur in the nearest future. A potential downside target is the Fibonacci 39.70% retracement at 80.61.
ZAR/JPY 1H Chart: Rising wedge in sight
The ZAR/JPY currency pair breached a long-term descending channel north at the beginning of November. The South African Rand has been depreciating against the Japanese Yen since the end of August. This movement has been bounded in a rising wedge.
Currently the exchange rate is testing the resistance level formed by the Fibonacci 50.00% retracement at 8.23. Given that the pair is being supported by the 55-, 100– and 200-hour SMAs, it is expected that the pair target the upper wedge line located circa 8.40 in the nearest future.
If given wedge holds, it is likely that a reversal south occurs within the following trading sessions.
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