ZAR/JPY 1H Chart: Likely to target 8.80
The South African Rand has been trading in a channel down against the Japanese Yen during the past three months. Two junior channels were also formed along the way.
The most recent test of the senior channel occurred earlier this week when the Rand reversed from the 9.10 mark. The rate has since breached the 55– and 100-hour SMAs and is currently approaching the combined support of the 200-hour SMA and the bottom boundary of the most junior pattern near 8.90.
It seems that there is still some downside potential in the market that should guide the Rand towards the monthly S1 at 8.90. In case bears continue dominating the market, the Rand could even push lower down to the intermediate pattern located in the 8.80/85 territory.
Conversely, a test of the 200-hour SMA might activate bulls for a few sessions. The aforementioned 9.10 area, however, is unlikely to be surpassed.
The most recent test of the senior channel occurred earlier this week when the Rand reversed from the 9.10 mark. The rate has since breached the 55– and 100-hour SMAs and is currently approaching the combined support of the 200-hour SMA and the bottom boundary of the most junior pattern near 8.90.
It seems that there is still some downside potential in the market that should guide the Rand towards the monthly S1 at 8.90. In case bears continue dominating the market, the Rand could even push lower down to the intermediate pattern located in the 8.80/85 territory.
Conversely, a test of the 200-hour SMA might activate bulls for a few sessions. The aforementioned 9.10 area, however, is unlikely to be surpassed.