Hello traders! CHF/JPY has been trending down since October 20, up until the point when it bottomed out at 113.79 on October 30. This is when the price has reached and rejected the bottom of the extended ascending channel as well as the lower trendline of the descending channel.
After a few days of consolidation, CHF/JPY formed a tribble bottom near 113.80 support, after which it went up and broke above the descending channel. The correction down followed, where the pair rejected the 200 Simple Moving Average twice, suggesting strong bullish momentum.
Therefore, as long as the price remains above 113.79 low, CHF/JPY should be expected to continue rising. The key resistance is located at 115.35, which is nearly 100 pips away from the current price. This resistance is confirmed by two Fibs 38.2% and 78.6% retracement levels as can be seen on the chart.
Bias: Strongly bullish while above 113.79
Potential Support Zone: 114.15 – 114.40
Potential Targets: 115.37
Have a profitable trading!