Hello traders! On the CHF/JPY currency pair there is interesting price action. Specifically, the pair has reached and rejected the uptrend resistance trendline. We can also see an indecision process while consolidation has been going on for the past 24 hours. At the same time, bears are defending the trendline resistance as the price has attempted to break above, although failed to close higher the point where the trendline has been rejected cleanly.
This is highly likely to result in a correctional move down, potentially to test the uptrend trendline. On the way down, there are two Fibonacci support levels to watch. First being 111.48, which is 76.4% retracement level corresponding to the uptrend trendline. The second is 111.35, which is 88.6% Fibs, which can easily be testes if CHF/JPY will produce the spike below the trendline.
But, if price breaks and closes below 111.35 downside target, it should be a confirmation of a much stronger correction down. On the other hand, if price breaks and closes above the recent high at 112.30, this should be the confirmation of the uptrend continuation.
Bias: Bearish while below 112.30
Potential Resistance Zone: 112.00 – 112.20
Potential Targets: 111.48, 111.35
Have a profitable trading!