Hello traders! I’ve spotted an interesting price action on CHF/JPY. On the 4H chart, the price has started printing lower lows and lower highs, which did suggest the downtrend.
But after that pair broke above the downtrend trendline under a heavy trading volume, showing the power of the bulls. Recently price corrected down and retested 111.10 support. This is a 38.2% Fibonacci retracement level which has been rejected twice cleanly.
This clean bounce is showing that CHF/JPY is likely to start moving higher and this time can be expected to produce a new higher high. But, before that it must break above the key resistance near 114.40 area. For now, this remains the nearest upside target, which is yet to be seen if broken or rejected. Break and close above could be interpreted as a confirmation of a long term uptrend, while rejection can initiate a very wide range trading.
Bias: Bullish while above 111.10
Potential support Zone: 111.10-111.00
Potential Targets: 114.20, 114.40
Have a profitable trading!