Major resistance - 109.80 (triple top)
CHJPY has broken 109.80 after a long consolidation and hits 8-week high. The pair was consolidating in a narrow range between 107.61 and 109.78 for the past 7-week. It has jumped more than 150 pips from low of 107.61. The jump was mainly due to continues decline in USDCHF on broad-based USD selling after dovish Fed. The escalation of the Middle East also supporting Safe-haven assets like Swiss franc and gold. The pair hits an intraday high of 110.20 and is currently trading around 110.19.
On the flip side, near term support is around 109.55 and any violation below will the drag the pair till 109/108.75/108.20. Any major weakness only below 107.60.
The near term strong resistance is around 110.60 (300- W EMA) and any break above confirm minor bullishness, a jump till 111.15/112 is possible.
It is good to buy on dips around 109.75-80 with SL around 109.25 for the TP of 111.15/112.
Additional Levels
108.96-98 (20-day MA/200-H MA)
110.40 (Trend line joining 114.63 and 111.97)
111.30 (300- day EMA)
111.50 (200- day MA)
