SGD/JPY 1H Chart: Several patterns at playThe pair’s movement has been guided by several patterns, the most eminent of which are a long-term ascending wedge (valid since mid-2016) and two shorter-term patterns—a channel up and descending wedge.
The Singapore Dollar bounced off the upper line of all three patterns on October 25 when it found the resistance of the weekly R1 at 83.74 and is now weakening against the Yen in the previously-mentioned descending wedge.
It should also be noted that the pair breached a three-month channel up last Friday. This factor together with characteristics of the junior wedge suggest that the pair might form a retracement near the 83.50/60 mark prior to resuming its movement down to the lower channel boundary circa 82.60/80.
Given that the rate faces a significant resistance area set by the 55-, 100– and 200-hour SMAs and the weekly PP, the rate might not even gain enough strength for the retracement, thus continuing to trade lower both in short- and medium term.
