Patterns: ZAR/JPY HKD/JPY
|ZAR/JPY 1H Chart: Two scenarios likely
The ZAR/JPY currency pair has been trading downwards since the end of December after it failed to surpass the Fibonacci 39.30% retracement at 7.79. As apparent on the chart, the pair is trading at 7.50.
Note that the exchange rate is pressured by the 55-, 100– and 200-hour moving averages, currently located circa 7.60. Thus, some downside potential could prevail in the market, and the rate could decline below 7.20.
However, note that the currency pair could gain support of the monthly S1 and the Fibonacci 23.60% in the 7.40 area. If the given support holds, a reversal north could occur, and the pair could re-test the Fibo 39.30%.
HKD/JPY 1H Chart: Short-term decline expected
Recently, the HKD/JPY exchange rate reversed south from the upper boundary of the long-term ascending channel at 14.20. Currently, the rate is trading at the weekly S1 at 14.00.
From a theoretical point of view, some downside potential could prevail in the market in the short term, as the currency pair should target the lower channel line located circa 13.90. If the given channel holds, a reverse north could follow, and some upside potential could prevail in the market in the medium term.
Otherwise, a breakout south could occur. In this case the exchange rate could gain support of the Fibonacci 61.80% retracement at 13.82.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.