August 04, 2022 08:42 GMT
- ZARJPY has been retracing higher after finding support at 7.84, which corresponds to its 200DMA, and is currently trading back around the psychological 8 level.
- We previously saw that the momentum on the pair has been looking bearish in the two months after the double top at 8.8060 reached in April and June.
- ST key resistance to watch on the downside stands at 7.8760, which corresponds to the neckline of the ‘double top neckline’ formation and the 50% retracement of the 6.9450 – 8.8060 range, followed by 7.84 (200DMA).
- On the topside, resistance to watch stands at 8.0950 (38.2% Fibo).