CHF/JPY about to break out
Updated
The situation on the CHF/JPY currency pair is hard to understand at first glance. However, if one keeps it short, the currency rate is surging in three various ascending patterns simultaneously.
Although, in accordance with the patterns the currency pair is about to experience a period of rather flat trading or a surge. The reason for that is the fact that an ascending triangle pattern has been formed during the recent weeks.
The rate is either going to fall down to the 114 mark, where close by various levels of support are located at, or surge up to the 115.50 mark, where the weekly R2 is at.
Although, in accordance with the patterns the currency pair is about to experience a period of rather flat trading or a surge. The reason for that is the fact that an ascending triangle pattern has been formed during the recent weeks.
The rate is either going to fall down to the 114 mark, where close by various levels of support are located at, or surge up to the 115.50 mark, where the weekly R2 is at.
Comment
At the start of a new month the Swiss Franc met with a considerable support level against the Japanese Yen just above the 115.00 mark. That level was supported by the lower trend lines of two channel patterns.
However, the resulting rebound has already met with resistance. The resistance is put up by the monthly PP at the 115.40 level and the weekly S1 at the 115.38 mark.
Due to that reason a small scale ascending triangle could form until the dominant channel forces the currency exchange rate into a breakout up to the 115.70 mark. On Friday at that level the 55 and 100– hour SMAs were about to meet.
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