Technical analysis of the South African rand-yen suggests that rallies are likely to face selling pressure and that the downtrend will continue. Under the base case, the pair is expected to decline toward the ¥9.500 key level after encountering resistance from the cloud, with previous lows becoming targets once that level is breached.
The Ichimoku cloud is constraining the rebound from the lows, and the South African rand-yen is expected to remain in a downtrend. Selling pressure is likely to intensify during rallies.
The first key level is ¥9.500. If it is breached, recent low levels of ¥9.397, ¥9.317, ¥9.286 and ¥9.266 are expected to become targets.
Under the alternative scenario, a rise could lead the pair to test the lower edge of the cloud at ¥9.642, the 5 November high of ¥9.681, and the upper edge of the cloud at ¥9.711.
The scenarios above are a summary of technical analysis based on an FX article from みんかぶ, a major currency information website.