Weekly Forex Update: HKD/JPY

HKD/JPY has recently completed the Flag chart pattern identified by Autochartist on the daily charts. The overall Quality of this chart pattern is measured at the 7 bar level which is the result of the strong Initial Trend (rated at the 10 bar level), low Uniformity (3 bars) and above average Clarity (6 bars). The completion of this chart pattern continues the predominant downtrend visible on the daily and the weekly HKD/JPY charts. More specifically, this Flag follows the preceding sharp downward price impulse (being the 'Flag-Pole' of this Flag, whose strength is reflected by the maximum Initial Trend value) from the strong level of resistance at the round price level 10.00. The top of this chart pattern (point B on the chart below) formed when the pair reversed down from the resistance level 10.0765 (identified previously by Autochartist, as is shown on the second Key Levels chart below). The pair is expected to fall further in the direction of the Forecast Area set between price levels 9.84 and 9.72.

As can be seen from the following daily Key Levels chart for HKD/JPY, the top of the above Flag formed when the pair revered down from the resistance level 10.0765, which had been recently identified by Autochartist.

The Key Levels chart below shows that the lower boundary of the Forecast Area calculated for the completion of the above Flag (9.72) stands very close to the strong horizontal level of support 9.7324, identified previously by Autochartist. Expect strong support at this level