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.


This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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