| Indicator | 4H | 1D | 1W |
|---|---|---|---|
| MACD(12;26;9) | Buy | Buy | Buy |
| RSI(14) | Neutral | Neutral | Neutral |
| Stochastic(5;3;3) | Sell | Neutral | Neutral |
| Alligator(13;8;5) | Buy | Buy | Buy |
| SAR(0.02;0.2) | Buy | Buy | Buy |
| Aggregate | ⇗ | ⇗ | ⇗ |
The HKD/JPY exchange rate continued to trade within the rising wedge pattern (4H time-frame chart). As apparent on the chart, the rate has already re-tested the upper pattern line.
From a theoretical perspective, it is likely that some downside potential could prevail in the market in the short run, as the currency pair should reach the lower pattern line located circa 13.92.
If the given pattern holds, it is likely that the Hong Kong Dollar could continue to appreciate against the Japanese Yen in the medium term. Otherwise, a breakout south from the pattern could occur. In this case the rate could gain support from the Fibo 61.80% at 13.82.