CHF/JPY 4H Chart: Reaches Long Term Support
Updated
The previous forecast for the Swiss Franc against the Japanese Yen lasted only in the short term. On a medium scale a medium term resistance line showed enough strength for the pair to descend in a new pattern.
Most recently the descending channel pattern has reached a massive scale long term support line. The line is strengthened by various levels of significance that surround them.
Below it the weekly and monthly S1s are located at the 114.40 mark. Just above it, at 114.70 level, the 23.60% Fibonacci retracement level is located at. All of these levels together with two clusters of resistance at 115.00 and 115.40 are likely going to squeeze in the pair.
Most recently the descending channel pattern has reached a massive scale long term support line. The line is strengthened by various levels of significance that surround them.
Below it the weekly and monthly S1s are located at the 114.40 mark. Just above it, at 114.70 level, the 23.60% Fibonacci retracement level is located at. All of these levels together with two clusters of resistance at 115.00 and 115.40 are likely going to squeeze in the pair.
Trade closed: target reached
The Swiss Franc rebounded against the lower trend line of the most dominant pattern last week against the Japanese Yen, when the pair was last reviewed. Since then the surge has continued as expected.
Although, recently the pair declined in a very small scale pattern, which was broken after the pair rebounded against the 115.00 mark. As a result of these moves an ascending channel pattern can be marked. The channel is aimed at the resistance line of the most dominant pattern, which has the form of a triangle.
In general, if the pair passes the monthly PP at the 115.40 mark, it should surge up to the 115.60 mark, which is the lowest level, where the pair channel up would meet the triangle’s resistance.
Note
After all the Swiss Franc passed the long term support line against the Japanese Yen, which was described in the first half of October. As a result of the move the situation has drastically changed.
The pair is declining simultaneously in two channel down patterns. However, the most junior pattern, which can be charted on the four hourly chart, is an ascending channel pattern.
In the short term the pair is set to surge until it meets with the various strong resistance levels at the 114.50 mark. Afterwards a decline is most likely to occur.
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