SGD/JPY 1H Chart: Rate tests short-term channel
A pattern that has dominated the SGD/JPY currency pair since late April is an ascending wedge. It seems that the maturity of this pattern could be reached within the following weeks, thus pointing to a possible breakout south.
In the short term, the Singapore Dollar bounced off the upper wedge boundary early in November and has since edged lower; thus, another formation—a more chaotic channel down—is apparent on the chart.
This pattern is guiding the pair towards the lower wedge boundary in the 81.90/82.20 area. The given channel is expected to dominate, thus pointing to weakening during the following week.
The nearest support is the 200-hour SMA, the weekly and monthly PPs circa 83.20. The Singapore Dollar might hinder near this mark, but should eventually breach it and approach the weekly and monthly S1s at 82.50.
In the short term, the Singapore Dollar bounced off the upper wedge boundary early in November and has since edged lower; thus, another formation—a more chaotic channel down—is apparent on the chart.
This pattern is guiding the pair towards the lower wedge boundary in the 81.90/82.20 area. The given channel is expected to dominate, thus pointing to weakening during the following week.
The nearest support is the 200-hour SMA, the weekly and monthly PPs circa 83.20. The Singapore Dollar might hinder near this mark, but should eventually breach it and approach the weekly and monthly S1s at 82.50.