SGD/JPY 4H Chart: Singapore Dollar tests long-term channel
The dominant long-term pattern which as confined SGD/JPY since mid-2016 is an ascending wedge. This long-term pattern is mentioned because the rate bounced of its lower boundary on Tuesday. Thus, the Singapore Dollar’s attempt to reach the bottom line of a five-week channel was stopped near 82.60.
The rate has since edged slightly higher during the previous session; however, the rate still faces several noteworthy resistance areas, such as the 55-hour SMA and the 38.20% Fibo at 83.30 and the monthly PP, the 23.6% Fibo and the 200-hour SMA circa 83.45, that are likely to hinder the pair for a brief period of time. These barriers, however, should eventually surrender and allow the pair to initiate a medium-term surge.
A possible target for the following week could be the psychological 84.00 level.
The rate has since edged slightly higher during the previous session; however, the rate still faces several noteworthy resistance areas, such as the 55-hour SMA and the 38.20% Fibo at 83.30 and the monthly PP, the 23.6% Fibo and the 200-hour SMA circa 83.45, that are likely to hinder the pair for a brief period of time. These barriers, however, should eventually surrender and allow the pair to initiate a medium-term surge.
A possible target for the following week could be the psychological 84.00 level.