ZAR/JPY may fall 766 - 1084 pips

Our pivot point stands at 8.3492.

Our preference

The downside prevails as long as 8.3492 is resistance.

Alternative scenario

Above 8.3492, look for 8.4028 and 8.4348.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 8.3944 and 8.4045). Finally, the ZAR/JPY has penetrated its lower Bollinger band (8.2992).

Supports and resistances

8.4348 **

8.4028 *

8.3492 **

8.3281

8.2850 last

8.2084

8.1766 **

8.1447 *

8.1129 **

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