Hello traders! The CHF/JPY currency pair has been consistently moving down. Price producing lower lows and lower highs while remains below 50 Exponential Moving Average, which suggests the validity of the downtrend.
Recently the ascending channel has been broken and on the correctional move up price has rejected the downtrend trendline along with the 50 EMA. Then yet another lower low was printed and pullback up followed. On the pullback, the lower trendline of the descending channel has acted as the resistance, pointing out that 116.90 could be the potential supply zone.
As long as price remains above 117.00 psychological resistance CHF/JPY must be expected to move lower. The strong support is seen at 116.12 , which is confirmed by two Fibs, 361.8% and 61.8% retracement levels. This is a potential 60 pip downside move, which is highly likely to be very fast and/or sharp.
Bias: Strongly bearish while below 117.00
Potential Resistance Zone: 116.70 – 117.00
Potential Targets: 116.12
Have a profitable trading!