- April 15, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The CHFJPY pair has been on a strong rally that smashed through our target on the last analysis:
Right now the price formed a new Channel Up, remaining within a Fibonacci Channel where it broke above the 1.5 Fib extension and almost reached as high as the 2.0.
However with the RSI hitting its October 20 2021 Resistance and the MACD forming a Bearish Cross, we have a strong set of indicators pointing towards a pull-back similar to June 2021 and August 2020. On both of those correction phases, the price pulled-back to at least the 0.5 Fibonacci retracement level. Currently that is on 126.565. It might make contact with the 1D MA200 (orange trend-line) there. If broken, the last Support is the 0.618 Fib at 124.455. After that correction we expect the pair to continue its long-term bullish trend.
Tradingview link:
https://www.tradingview.com/chart/CHFJPY/7h0EZx1V-CHFJPY-Correction-ahead