We have recently identified the horizontal Key Support Level 10.1520 (Type Approach) on the 4-hour HKD/JPY charts. The Significance of this Support level is measured at the 4 bar level which corresponds to the 4 recent price reversals from 10.1520. Points A and D on the Key Level chart below enclose the well-formed daily ABC correction to the preceding sharp daily downward price thrust from the strong resistance area lying at the intersection of the longer-term weekly downward price channel resistance trendline from the April of 2009 as well as the 38,2% Fibonacci Retracement of the preceding weekly sharp downward price impulse from the May of 2010 (as is shown on the second chart below). Point D was formed at the 38,2% Fibonacci Retracement of the latest daily downward price impulse from the aforementioned resistance area. The pair is expected to fall further to the Key Support 10.1520 in the nearest time.
The following weekly HKD/JPY chart shows the longer-term picture of this currency pair’s movement:
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The following weekly HKD/JPY chart shows the longer-term picture of this currency pair’s movement:
HKD/JPY" title="HKD/JPY" width="581" height="610" />