HKD/JPY 4H Chart: Rectangle

As the Hong Kong Dollar is trading within a rectangle pattern, there is a high probability it will be confirmed to the downside by the end of this working week. Downward pressure will grow, as the HKD/JPY pair has been hovering below the 200-period SMA since early February and this moving average will shortly enter the territory of the pattern. More supply is offered by the monthly pivot point and weekly R1 that currently underpin the 200-period SMA from below. After the bears deal with the weekly S1 at 14.4823, the focus will shift to the second weekly support at 14.3031, which is backing the lower edge of the pattern. Meanwhile, HKD is still overbought (70%) in the SWFX market, while technicals are bearish.