FxWirePro: CHF/JPY breaks below channel base support at 114, hits fresh yearly low at 112.28
CHF/JPY has been trading a downward channel since August 2015, broke strong channel base support at 114 on Friday's trade. The pair hit fresh yearly lows at 112.28 early today, has edged slightly higher to currently trad…
CHF/JPY has been trading a downward channel since August 2015, broke strong channel base support at 114 on Friday's trade.
The pair hit fresh yearly lows at 112.28 early today, has edged slightly higher to currently trade at 112.69, bias is still lower.
Price action is well below the cloud and major moving averages are biased lower, however Stochs and RSI are at oversold so some caution advised.
Risk-off continues to favour the Japanese Yen, also CFTC positioning shows increase in Yen longs amid global uncertainty in the markets.
Immediate resistance is seen at 114 levels, while little chart support see till 118.88 (Aug 8th 2014 low). Further weakness could see 111.70 (Feb 4th 2014 low) and then 111.22 (Oct 16th 2014 low).
Recommendation: Sell rallies around 112.60, SL: 113.60, TP: 111.90/111.70/111.20
