TRY/JPY 1H Chart: Rate narrows trading range
Following the massive plunge on October 8, TRY/JPY entered a period of consolidation in the result of which an ascending wedge was formed. The rate tested its lower boundary late on Monday and has since re-gained some lost positions. Taking into account that this pattern was preceded by a wave down, a breakout should occur to the downside.
As apparent on the chart, the rate is facing a resistance of the 200-, 100– and 55-hour SMAs, the 38.2% Fibo, the weekly PP and the monthly S2 in the 30.70/80 territory.
This significant area is likely to hinder or even halt the pair from moving higher. Thus, it is more likely that the rate moves lower during this trading week, setting the weekly S2 and the monthly S3 at 13.16 as a possible downside target.
As apparent on the chart, the rate is facing a resistance of the 200-, 100– and 55-hour SMAs, the 38.2% Fibo, the weekly PP and the monthly S2 in the 30.70/80 territory.
This significant area is likely to hinder or even halt the pair from moving higher. Thus, it is more likely that the rate moves lower during this trading week, setting the weekly S2 and the monthly S3 at 13.16 as a possible downside target.