ZAR/JPY 1H Chart: Channel Down

The South African Rand has depreciated substantially against the Japanese Yen within the last six weeks, thus forming a channel down - valid for most of this downfall. As apparent on the chart, the rate failed to reach the bottom channel boundary in its last wave down and, subsequently, breached the upper line mid-session. This failure was an early indication that the momentum downwards was allaying, especially when a new up-trend took the upper hand. Other indicators are likewise turned bullish, adding some ground to the assumption that a surge may be due. However, more green candles are still necessary to confirm that the pair will not to return in the channel down. By and large, the pair is likely to follow the junior channel, and in case of a strong momentum north, the steepness of the up-trend will shift to the upside.