Hello traders! Very interesting opportunity on CHF/JPY currency pair. On the daily chart, the price has been moving within the ascending channel as well as above the 200 Exponential Moving Average. Price is producing higher highs and higher lows, confirming the validity of a long term uptrend.
While it might seem that the descending channel has been broken, yet there was no clean daily close below the 111.73 support. CHF/JPY almost reached and found the support today at 200 EMA, although didn’t’ touch it and went up.
Currently, CHF/JPY IS trading near 112.50, although on 1h timeframe price hasn’t tested the 200 EMA as resistance. There seems to be more room for growth especially considering today’s price action. Pair broke the downtrend trendline, then bounced back and cleanly rejected 61.8% Fibonacci support at 111.81. After that a new higher high as been printed, yet again a bullish sign. At this point in time, buying opportunity can present itself at any correctional move down.
Price is expected to move up and could reach 23.6% Fibonacci resistance at 113.56. This level has previously acted as support as well as resistance and certainly plays an important role. On the downside, only break and close below 111.81 will invalidate bullish outlook and CHF/JPY can move lower to form a double bottom near 111.30 area, and even go further down.
Bias: Bullish while above 111.81
Potential Support Zone: 112.00-111.81
Potential Targets: 1113.56
Have a profitable trading!