Patterns: ZAR/JPY, USD/ZAR
|ZAR/JPY 4H Chart: Ascending channel in sight
The ZAR/JPY exchange rate has been trading upwards within an ascending channel since the beginning of August.
From a theoretical perspective, it is likely that the currency pair could continue to extend gains within the given channel in the nearest future. Note that the pair could face the resistance level—the Fibo 23.60% at 6.48.
In the meantime, it is unlikely that bears could prevail in the market, and the exchange rate could decline below the monthly S1 at 6.02.
USD/ZAR 4H Chart: Short-term decline expected
Since the beginning of August, the USD/ZAR currency pair has been trading downwards, guided by a descending trend line.
Given that the exchange rate is pressured by the 55-, 100-and 200-hour moving averages, it is likely that some downside potential could prevail in the market. In this case the rate could gain support from the Fibo 38.20% at 16.25.
If the given support level holds, it is likely that a reversal north could occur, and the currency pair could re-test the Fibo 23.60% at 17.37. Otherwise, it is likely that the pair could target the Fibo 50.00% at 15.34.
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