ZAR/JPY 1H Chart: Pair shows signals of reversal
The South African Rand has been appreciating against the Japanese Yen since the beginning of September after the pair reversed from the lower boundary of a medium-term channel at 7.12.
As apparent on the chart, the pair is trading near the upper channel line. From the theoretical point of view, a reversal could occur in the nearest future. Technical indicators for the 1D and 1W time-frames also support bearish scenario. Possible downside targets for the following sessions is the 55-period (4H) SMA at 7.39 and the weekly S1 at 7.29.
It is the unlikely case that some bullish pressure still prevails in the market, the currency pair should not exceed the resistance cluster formed by the Fibonacci 23.60% retracement and the weekly R1 near 7.70.
As apparent on the chart, the pair is trading near the upper channel line. From the theoretical point of view, a reversal could occur in the nearest future. Technical indicators for the 1D and 1W time-frames also support bearish scenario. Possible downside targets for the following sessions is the 55-period (4H) SMA at 7.39 and the weekly S1 at 7.29.
It is the unlikely case that some bullish pressure still prevails in the market, the currency pair should not exceed the resistance cluster formed by the Fibonacci 23.60% retracement and the weekly R1 near 7.70.
The ZAR/JPY exchange rate breached a medium-term channel and reached the weekly R2 at 7.8783.
As apparent on the chart, new descending channel (drawn in red) has been formed recently. If given channel holds, the pair could reverse from its upper line and aim for the support cluster formed by a combination of the 55-, 100-hour SMAs, the weekly R1 and the Fibonacci 23.60% retracement in the 7.65/7.75 range. Technical indicators for the long term support bearish scenario.
Otherwise, the pair could breach new channel and continue going upside to the resistance cluster formed by the Fibonacci 50.00% retracement and the monthly R1 located circa 8.20