ZAR/JPY may rise 828 - 1188 pips

8.0157 is our pivot point.

Our preference

The upside prevails as long as 8.0157 is support.

Alternative scenario

The downside breakout of 8.0157 would call for 7.9555 and 7.9196.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 8.0303 and 8.0129). Finally, the ZAR/JPY has crossed above its upper Bollinger band (8.0658).

Supports and resistances

8.2596 **

8.2237 *

8.1878 **

8.1518

8.0690 last

8.0393

8.0157 **

7.9555 *

7.9196 **

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