SGD/JPY 1H Chart: Channel Up
The Singapore Dollar has formed a near-term ascending channel against the Yen. The pair has currently reached its 2017 high, thus it may edge lower in the upcoming days. This assumption may be supported by trend indicators that demonstrate the weakening of the up-trend. Nevertheless, there is still some slight upside potential that may push the Dollar towards the upper channel boundary. By and large, the up-trend has been effectively supported by the 55-hour SMA that should be breached in order to confirm the prevalence of the bearish sentiment.
The Singaporean Dollar is trading in a channel up against the Japanese Yen. This pattern was formed on August 17, and it has already provided four confirmations of its upper boundary. The bottom side, however, still needs another confirmation.
As apparent on the daily chart, this short-term pattern was formed inside of a long-term wedge which has confined the rate since mid-2016. The upper wedge boundary was reached early on Monday and the rate has subsequently fallen down to the 82.50 mark.
During the past few hours, the Dollar has tried to move above the 200-hour SMA, the weekly S1 and the monthly R2 near 82.70 but failed to do so. This suggests that the assumption of the rate declining down to the lower channel boundary might hold true. This area is likewise reinforced by the weekly S2 and the monthly R1 at 82.12 and 81.97, respectively.