CHF/JPY bottomed out on October 30th when the price tested 113.78 low. What is important about this price level is that it corresponds to two trendlines. First is the lower trendline of the ascending channel and second is the lower trendline of the descending channel. It can be seen that CHF/JPY rejected this support area and produced a triple top near 113.80.
Then the pair went up and broke above the 50 Exponential Moving Average, followed by the downtrend trendline. This is the first strong bullish signal for the CHF/JPY, which might result in either a corrective move up or a beginning of an uptrend.
But first, it is probably better to consider a correctional move, where the price is likely to test 115.37 resistance, which corresponds to 78.6% and 38.2% Fibs as per the 1-hour chart. This price area also corresponds with yet another trendline cross area, occurred on October 28. All-in-all, the 115.37 level should be acting as the nearest and key resistance as long as the price stays above the 113.78 low. If/when CHF/JPY will move below 113.78 support, the bullish forecast will be immediately invalidated, and downtrend continuation should be the case.
Key support levels: 114.00, 113.78
Key resistance levels: 114.85, 115.37
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
Then the pair went up and broke above the 50 Exponential Moving Average, followed by the downtrend trendline. This is the first strong bullish signal for the CHF/JPY, which might result in either a corrective move up or a beginning of an uptrend.
But first, it is probably better to consider a correctional move, where the price is likely to test 115.37 resistance, which corresponds to 78.6% and 38.2% Fibs as per the 1-hour chart. This price area also corresponds with yet another trendline cross area, occurred on October 28. All-in-all, the 115.37 level should be acting as the nearest and key resistance as long as the price stays above the 113.78 low. If/when CHF/JPY will move below 113.78 support, the bullish forecast will be immediately invalidated, and downtrend continuation should be the case.
Key support levels: 114.00, 113.78
Key resistance levels: 114.85, 115.37
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
Trade closed: target reached