The Turkish Lira has been appreciating against the Japanese Yen within the ascending channel since the beginning of May. As apparent on the chart, the TRY/JPY currency pair is testing its lower boundary at 18.80.
From a theoretical perspective, short-term advance is expected, as the exchange rate could reverse south to target the upper channel line located in the 19.90/20.00 range. If the given trend holds, a general direction is expected to remain north.
However, note, that the rate is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 18.99/18.13 range. Thus, the pair could breach the given channel south and go downwards to the Fibonacci 61.80% retracement at 18.25.
