The ZAR/JPY currency pair has re-tested the upper boundary of a medium-term ascending channel twice since the beginning of October.
As apparent on the chart, the pair is currently trading near the upper channel line located circa 7.95. Given that the pair is supported by the 55– and 100-hour SMAs near 7.85, it is expected that a breakout north occurs in the following trading sessions. Technical indicators for the 4H and 1D time frames support bullish scenario.
However, if given trend holds, a reverse occurs within following days. A potential downside target is the Fibonacci 23.60% retracement at 7.67.