Hello traders! CHF/JPY has been quite volatile lately, along with most of the financial assets. But at the same time, it has been quite stable, as we can see the price has been ranging during the past few weeks.
At the same time, we can see higher highs and higher lows produced on 4H time. Another important thing is to break and close above the 200 Exponential Moving Average. However, it also might be an ABC correctional move up, and break above the 200 EMA could have been the move to get more buyers on board, and then “think the boat”.
Now it is important to watch the key support level located at a 50% Fibonacci retracement level which is 111.40. This price will most likely show where this currency pair is headed in the medium to long term. Therefore, a small downside move should be expected towards this support area, which also corresponds to the uptrend and downtrend crosspoint.
On the upside, either rejection of 111.40 or break above 113.70 could confirm the validity of the uptrend.
Potential Resistance Zone: 112.37 – 113.24
Potential Targets: 111.40, 110.95, 110.42
Have a profitable trading!