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chfjpy technical

CHFJPY failed to rally to the 118 resistance, registering a failed attempt at 117.61.

The pair is trading above the 38.2% Fibonacci handle of the 139.11-101.69 bearish leg. This keeps the pair biased to the upside in the belong-term.

In addition, the recent attempt saw prices break the median regression of the 58.70-100.86 ascending channel.

The multi-month high triggered a pullback and the pair entered a downplay. This is also signaled on the momentum indicator as it formed a bearish divergence.

The short-term outlook suggests another upside leg before spurring stronger short bets. This is indicated through a bullish momentum signal, as seen in the chart below.

chfjpy

Prices are trading below the median regression of the 108.65-114.48 leg. Thus, we will focus on the 115.99 support bounce, or break, first.

The depth of the downplay will depend on the firmness of the said support. A break will bring the 38.2% Fibonacci of the 108.65-117.61 leg back in play.

This could act as a confluence leve...


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