The SGD/JPY currency pair has been trading sideways between the Fibonacci 23.60% retracement at 77.38 and the lower boundary of the falling wedge pattern located circa 75.50 since the beginning of August.
From a theoretical point of view, it is likely that some upside potential could prevail in the market in the short term, as the exchange rate has to target the upper pattern line located in the 77.50/78.50 range.
However, if the given Fibonacci retracement holds, it is likely that the Singapore Dollar could continue to consolidate against the Japanese Yen. Also, note that the exchange rate is also supported by the weekly S1 at the 75.56 mark.
