Right now, the Swiss franc is rising against the Japanese currency. Is it time for a fullcorrection or it’s just a ‘bearish flag’?
1D TF - price broke the 23.6% Fibo correction up
Divergence between histogram and price movement
is returning back fromoversold zone
The price made a gap down on the 6th of May. We think that the price could try to close this ‘window’ soon. As a result the target for the price is 109.279 at 38,2% Fibo correction level
Taking into consideration the global trend we strongly recommend to decrease the amount of your position. If the pair breaks the level 109.279 the next target will become 109.793
Summary: it is possible to open long positions if the pair breaks its short 9-EMA (108,642).
In Switzerland is released on Tuesday (PPI for April). Japanese is released on Wednesday – the forecast is +1,1%. The previous fact was 1,3%. If the fact is released better than the forecast, the Japanese yen can strengthen.