HKD/JPY 4H Chart: Rising Wedge

Judging by the fact that HKD/JPY has formed a rising wedge pattern on the four-hour chart (usually this formation portends a sharp drop in price), the rally that was started on Oct 25 appears to be overdone right now. Another argument against further appreciation of the Hong Kong Dollar relative to the Japanese Yen is proximity to the formidable resistance at 13.3680, which is created by the May high, but also reinforced by the weekly R2.

Nevertheless, an overwhelming majority (74%) of SWFX market participants expect extension of the rally beyond the current trading levels.