FxWirePro: CHF/JPY bulls resume after a ray of hope from triple bottom formation – Bid longs for trading via binaries and short hedge

Pattern Formed- Triple Bottom with bottom 1 at 113.403, bottom 2 at 113.286 and bottom 3 at 113.352 levels.

The major support is seen at 113.30 levels.

CHFJPY has tumbled sharply after hitting high of 114.707 on Nov 14th, 2017. The pair hits low of 113.36 at the time of writing. It is currently trading around 113.51.

Short-term trend is slightly bullish as long as support 113.30 holds. The sustenance above these levels would drag the pair minimum up to 113.873 (38.2% retracement).

The near-term resistance is around 113.67 (23.6% retracement of 114.70 and 113.35) and any break above will take the pair to next level 114.1029 (21SMA), 113.9984 (50SMA).

On a broader perspective, ever since the formation of the bearish engulfing pattern at 113.796 levels, the bearish pressure seems still intact as the prices kept plummeting 4th consecutive month in a row (refer weekly chart). Both leading oscillators on this timeframe have been constantly converging downwards that indicates the strength and bearish momentum going forward.

Trade tips:

 Well, contemplating above technical rationale, it is wise to buy on dips around 113.30 via one touch binary call option for the TP of 114/114.20.

On the flipside, activate shorts in futures contracts of mid-month tenors on hedging grounds.

Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly CHF spot index has shown -9 (which is neutral), while hourly JPY spot index was at 92 (bullish) while articulating at 13:10 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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