On October 9, CHF/JPY broke above the downtrend trendline, which could have been the first indication of the bullish domination. However, since then the price has corrected down and hasn’t been trending much. Nonetheless, higher highs and higher lows are being printed, yet again suggesting an increasing buying pressure.
Yesterday CHF/JPY rejected the downtrend trendline, which this time acted as the support. At the same time, it rejected the uptrend trendline as well as 200 Simple and Exponential Moving Average. The mos recently printed low at 115.22 is now playing a key role in further price development. As long as 4h and/or daily closing prices remain above this support, CHF/JPY will continue rising.
The nearest resistance is located near the 116.40 area, which is confirmed by 23.6% and 78.6% Fibonacci retracement levels, as can be seen on the chart. This is only a 60+ pips upside move, which is expected. However, a daily break and closes above 116.40 resistance should confirm a stronger upside move, which could bring the price up to 117.30 or 118.00 psychological resistance.
In regards to the downside risk, 4h and/or daily break and close below 115.22 will invalidate bullish forecast and then CHF/JPY is highly likely to continue trending down.
Key support levels: 115.63,115,22
Key resistance levels: 116.40, 117.30
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Yesterday CHF/JPY rejected the downtrend trendline, which this time acted as the support. At the same time, it rejected the uptrend trendline as well as 200 Simple and Exponential Moving Average. The mos recently printed low at 115.22 is now playing a key role in further price development. As long as 4h and/or daily closing prices remain above this support, CHF/JPY will continue rising.
The nearest resistance is located near the 116.40 area, which is confirmed by 23.6% and 78.6% Fibonacci retracement levels, as can be seen on the chart. This is only a 60+ pips upside move, which is expected. However, a daily break and closes above 116.40 resistance should confirm a stronger upside move, which could bring the price up to 117.30 or 118.00 psychological resistance.
In regards to the downside risk, 4h and/or daily break and close below 115.22 will invalidate bullish forecast and then CHF/JPY is highly likely to continue trending down.
Key support levels: 115.63,115,22
Key resistance levels: 116.40, 117.30
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.