Hello traders! Looking on a Daily chart we can see that CHF/JPY is going through a long term consolidation phase. Price seems to be stuck between 110.00 support and 114.00 resistance areas. Currently, price is trading right at the 200 Exponential Moving Average, which so far has provided strong support for the pair. This could mean, that as long as daily closing prices remain above 111.17, CHF/JPY could be producing yet another wave to the upside.
And now if we look at the 4-hour chart, we can see a strong formation of the support near 61.8% Fibonacci level at 111.24. Also, the uptrend trendline has been rejected cleanly, suggesting a move to the upside. Nevertheless, spike below the trendline is quite likely, and we need to see the price action near 111.24 support.
But if the support holds, CHF/JPY is expected to move towards one of the Fibs resistance levels. It is either 38.2% at 112.30 or 23.6% at 112.94.
Bias: Bullish while daily closing price remains above 111.17
Potential Support Zone: 111.30 – 111.00
Potential Targets: 1112.30, 112.95
Have a profitable trading!