HKD/JPY 4H Chart: Channel Down
- The Hong Kong Dollar is depreciating against the Japanese Yen simultaneously in medium-term and short-term descending channels.
- The junior pattern represents a second rebound of the currency exchange rate from the upper trend-line of the senior formation.
- It seems that in the early Wednesday morning the pair has already bounced off from a combined support level set up by the 200-period SMA and the weekly S1 at 14.3165.
- Hence, the question of the day is whether the rate will manage to break through the junior channel‘s upper edge or it will make a rebound and continue to move downwards.
- Due to the narrowness of this formation, the first scenario seems very possible.
- However, even if it realizes, the surge most probably will be limited by the 55- and 100-period SMAs with the weekly PP at 13.4863.
