Weekly Chart
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The weekly chart shows that the pair has now been on a rise for nine months already, encountering several strong areas on the way, the last ones being the Gann angle at 8.29 and the Fibonacci Retracement and Extension cluster at 8.59/61. A retracement of the broken angle led to a bump against the aforementioned confluence and a break above on the next attempt. We are now looking at a seemingly bullish setting for ZAR/JPY, but would want to see some more corrective movements before the trend extends.
Daily Chart
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The daily chart shows the pair following the bottom bound of a pitchfork very consistently, which leads us to set an upside target at 9.13, the next Fibonacci retracement. The pitchfork could eventually break to the downside though, and this scenario is confirmed by the distinct stickiness of the lower trend-line. A motion in which the pair falls short of tests of the Fibonacci level and breaks the pitchfork sooner than expected, cannot be eliminated. A turning point in bears' favor would be confirmed with a break below the bottom line of the pitchfork which currently lies at 8.82. A bullish divergence in the MACD, however, suggests that the break below the line on the hourly chart is a false one and the pair will return to continue the pitchfork-bound trade in the nearest future. What makes us lean even more towards a continued surge is that the pair has just hit the junior Fibonacci expansion at 8.81, signaling that downside motions will be tough to execute.
Hourly Chart
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