TRY/JPY 4H Chart: Channel Up

The Turkish Lira is trading against the Japanese Yen in a medium-term ascending channel. The pattern started to form after the Lira's weakling by 144 basis points in the second half of May. The last two weeks the currency pair spent in a continuous decrease and, thus, has entered into a small symmetrical triangle. Since the upper trend-line coincides with the 55- and 100-period SMAs and they all are additionally protected by a combination of the weekly and monthly PP at 31.543 and 31.597, the breakout in the northern direction seems unlikely. In contrast, the southern side contains no barriers other than the weekly and monthly S1, which are located below the channel's support line. Consequently, there is a high probability that both formations will be broken during the next two-three days.