TRY/JPY 1H Chart: Medium-term channel in sight
The Turkish Lira has been driven by a strong upside momentum against the Japanese Yen since the middle of August, and thus sending the currency pair to the weekly R2 at the 21.94 mark.
As apparent on the chart, the pair is testing the upper boundary of the medium-term ascending channel near 22.10. Given that the exchange rate is being supported by the 55– and 100-hour SMAs, it is expected that a breakout north occurs in the nearest future.
However, if given channel holds, it is likely that a reversal south occurs soon. Important support level to look out is the 200-hour SMA, currently located at 21.05.
As apparent on the chart, the pair is testing the upper boundary of the medium-term ascending channel near 22.10. Given that the exchange rate is being supported by the 55– and 100-hour SMAs, it is expected that a breakout north occurs in the nearest future.
However, if given channel holds, it is likely that a reversal south occurs soon. Important support level to look out is the 200-hour SMA, currently located at 21.05.