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After gapping to the upside at Sunday’s open, the CHF/JPY has moved back within the channel to hold below the 120 SMA. Price action continues to move to the downside after finding resistance near 97.35 (38.2% Fib level of 93.45-103.80).
Analysis Update
Short-Term Bias: Short
Chart: 15 Min Charts
THE CHF/JPY has yet to move in our favor, and looks to testing 95.63 (21.4% Fib level of 93.45-103.80) for resistance. We expect the downward trend to hold in the near-term, and forecast price action to break below 95.00 over the next few days.
The downtrend in the 120 SMA has led us to hold our bearish outlook for the pair, and we anticipate the CHF/JPY to hold within the channel. Price action has recently crossed above the 120SMA near the top of the channel, and we expect the swissie-yen to move lower over the next few hours. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
After gapping to the upside at Sunday’s open, the CHF/JPY has moved back within the channel to hold below the 120 SMA. Price action continues to move to the downside after finding resistance near 97.35 (38.2% Fib level of 93.45-103.80).
The downward trend in the swissie-yen has led price action to break below 95.00, and we expect the pair to test 94.00 for support over the next few days. However, we may see some choppy price action as the pair nears the historical support level at 94.00, but we expect the downward momentum to carry the pair below 93.50 in the coming weeks. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.
To contact the author of this article, please email: dsong@fxcm.com
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