ZAR/JPY 1H Chart: Short-term decline expected

Source: Dukascopy Bank SA

Indicator 4H 1D 1W
 MACD(12;26;9) Sell Buy Sell
 RSI(14) Neutral Neutral Neutral
 Stochastic(5;3;3) Neutral Buy Neutral
 Alligator(13;8;5) Sell Neutral Neutral
 SAR(0.02;0.2) Sell Sell Buy
 Aggregate

The South African Rand has been depreciating against the Japanese Yen since the beginning of February when the rate tried to surpass strong resistance formed by the Fibonacci 50.00% retracement at 8.22.  

Given that the currency pair is being pressured by the 55-, 100– and 200-hour SMAs, it is likely that downside momentum prevails in the market within following sessions. Most likely, the rate targets the lower boundary of the long-term ascending channel located circa 7.50.  

If given channel holds, it is expected that a reversal north occurs. Otherwise, the rate breaches the channel south and continues to decline towards the psychological level at 7.40.

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