The last week, CHF/JPY potentially produced a double top near the 117.80 resistance area, which was already rejected twice in July-August. This shows that bears are strongly defending this area and might start to push the price lower, but only as long as resistance holds.
Based on two Fibonacci retracement indicators, applied to the last wave up as well as the recent correction down, we can spot two support levels. The nearest one and the most important level is located at 115.00, which is a physiological price. It corresponds with the 38.2% Fibs as well as the 200 Exponential Moving Average, which should provide support in the future. And finally, it also goes in line with the downtrend trendline and the uptrend trendline, which crosses right at the 115.00 level.
The next support is slightly lower and can be located at 114.35. It is confirmed by two Fibonacci retracement levels, the first being 23.6% and the second 38.2%. This level corresponds to the previously formed key supply zone, which this time might become a demand area and must also be monitored for either a breakout or rejection if/when reached.
However, the long-term uptrend is ongoing and the risk of the probability of the uptrend continuation remains high. Break above the recently printed high at 117.88 will invalidate the bearish forecast, and buyers will likely take complete control over the CHF/JPY.
Key support levels: 115.00, 114.35
Key resistance levels: 117.88
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Based on two Fibonacci retracement indicators, applied to the last wave up as well as the recent correction down, we can spot two support levels. The nearest one and the most important level is located at 115.00, which is a physiological price. It corresponds with the 38.2% Fibs as well as the 200 Exponential Moving Average, which should provide support in the future. And finally, it also goes in line with the downtrend trendline and the uptrend trendline, which crosses right at the 115.00 level.
The next support is slightly lower and can be located at 114.35. It is confirmed by two Fibonacci retracement levels, the first being 23.6% and the second 38.2%. This level corresponds to the previously formed key supply zone, which this time might become a demand area and must also be monitored for either a breakout or rejection if/when reached.
However, the long-term uptrend is ongoing and the risk of the probability of the uptrend continuation remains high. Break above the recently printed high at 117.88 will invalidate the bearish forecast, and buyers will likely take complete control over the CHF/JPY.
Key support levels: 115.00, 114.35
Key resistance levels: 117.88
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.