HKD/JPY 4H Chart: Channel Up

Development of the bullish channel by HKD/JPY is somewhat reminiscent of the up-trend observed in GBP/AUD. The lengths of the patterns and price behaviours are very similar. Nevertheless, while the Sterling is in the upper part of the trading range implied by the upward-sloping corridor, HKD/JPY is currently testing the lower trend-line, which is reinforced by the weekly PP and the 200-period SMA. Accordingly, there is an increased likelihood of a rally appearing in the nearest future. Potentially, it could extend up to 13.8253. The bullish bias is also provided by the weekly technical indicators—five out of eight are giving ‘buy' signals.