ZAR/JPY may fall to 6.9977 - 7.2351

Our pivot point is at 8.2388.

Our preference

The downside prevails as long as 8.2388 is resistance.

Alternative scenario

Above 8.2388, look for 8.6485 and 8.8923.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 8.4087 and 8.5239).

Supports and resistances

8.8923 **

8.6485 *

8.2388 **

8.0779

7.8120 last

7.2351

6.9977 **

6.7602 *

6.5228 **

Number of asterisks represents the strength of support and resistance levels.