Home Forex Forex Market Analysis CHF/JPY reaches main support levels

CHF/JPY reaches main support levels

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Main scenario:

The pair had reversed from the key resistance at 113.05 which was the top of the ascending channel & 50% Fibonacci level

The price successfully went down to reach the support 111.3, along with the upper side of the ascending channel

The resistance 111.9 is crucial level, if the price closes above it, we may see the price hiking to 113.05 again

 

Alternative scenario:

If the price couldn’t break through that resistance and closes beneath the support 111.3, a possible bearish momentum would take place to the next support at 110.3

 

Entry:

The price is about to form an engulfing candle, but we will have to wait for a break above the 111.3 level to secure the entry

 

Stop loss:

As long as the 111.3 level was a stable support, it will be the appropriate stop loss.

 

Take profit:

The red resistance zone of 112.55-113.05 was the last area that stopped the price, so we can make them our first and second targets

 

Trade duration:

It’s considered as a swing trade, so patience and consistency are needed.

 

Warning level:

If the support & ascending channel are broken, I would consider closing the trade as it may have more bearish momentum then.



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