TRY/JPY 4H Chart: Rising Wedge
|ZAR/JPY 4h Chart: Channel Up
The South African Round is gaining value against the Japanese Yen in a short-term ascending channel. Formation of the pattern began after the currency exchange rate made a reversal and broke through the upper-trend line of a preceding descending channel. Due to narrowness of the formation, it is unlikely that it would sustain for long. Most likely the pair is going to make a rebound after reaching a resistance level near the 8.697 mark. If such scenario comes true, this will confirm an existence of a double top pattern. On the other hand, it is also possible that the rate is going to climb higher and try to test the weekly R1 at 8.753. In addition, the fall below the 8.609 level is not likely, as it is supported by the weekly PP, 55- and 100-period SMAs.
TRY/JPY 4H Chart: Rising Wedge
The Turkish Lira is trading against the Japanese Yen in a rising wedge pattern. Formation of this figure within the medium-term ascending channel began after the currency exchange rate could not break through the monthly PP at 31.271 and began narrowing down. From a technical perspective a rebound near the 21.883 is expected to follow with the subsequent breakout downwards. Even if the pair would cross the upper boundary of the formation, the surge most likely will be restrained by the weekly R1 at 31.950. On the other hand, a support level set up by the weekly PP at 31.630 and 55-period SMA might stop the fall and force the pair to go for another round.
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