CHF/JPY - Will the BULLS try to close the GAP?

FX:CHFJPY   Swiss Franc / Japanese Yen
Trading negotiations between the US and China have placed the Japanese currencyunder pressure. Japanese household spending on Thursday the 9-th rose (the fact is+2,1% against the forecasted +1,7%).

Right now, the Swiss franc is rising against the Japanese currency. Is it time for a fullcorrection or it’s just a ‘bearish flag’?

Technical analysis
1D TF - price broke the 23.6% Fibo correction up
Divergence between MACD histogram and price movement
RSI 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 bearish 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).

Fundamental analysis
In Switzerland inflation is released on Tuesday (PPI for April). Japanese inflation 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.
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