ZARJPY at risk of falling a lot.

9 sep. 2017Generally speaking last week (Friday mostly) the South African Rand lost lots of ground against most currencies and I would consider the move as an impulse that should see follow through.

ZARJPY is in a long term downtrend and could resume it very soon. More details below.

9 sep. 2017

Kommentera

A closer look: the whole of 2016 and most of 2017 were spent building a rising wedge as a corrective pattern. The wedge was broken at the beginning of the month of August and confirmed by a backtest last week.

9 sep. 2017

Kommentera

4H chart:

9 sep. 2017

Kommentera

My plan is to sell the pair with a stop above the previous high. Should things turn really south we could see a drop below 6 as a final target over the next couple of years (very pessimistic scenario)