Hello traders! During the past few days, CHF/JPY has been trading at the support area, which is confirmed by 200 Exponential Moving Average. Besides, previously, the support at 114.86 level was already established back on October 18. And yet again this price area is acting as the demand zone, which might result in the upside move, but only as long as it is respected.
The key resistance and the potential upside target is located at 115.93. This level is confirmed by two Fibonacci retracement levels, 78.6% and 38.2% as can be seen on the chart. This resistance also corresponds to the simple downtrend trendline, which does suggest that price could be testing the resistance within just 2-3 trading days.
In regards to the downside risk, break below the most recently printed low at 114.71, will invalidate the bullish forecast and will confirm a 200 EMA breakout. Only then the downtrend continuation can be expected.
Bias: Strongly bullish while above 114.71
Potential Support Zone: 114-80 – 115.00
Potential Targets: 115.93
Have a profitable trading!