After forming a double top reversal patter at 134 on June 22, CHF/JPY started to move lower
resulting in a breakout of the descending channel. The pair found the bottom at
127.05 on July 08.
The Fibonacci applied to the
ascending channel breakout point shows that S2 (128.08) support has been broken
while a price rejected the R2 (131.29) resistance fter a correctional wave up.
The upper trendline of the descending channel was rejected as well and now R1 is playing the role of the key resistance.
Consider selling CHF/JPY today
while the price is near R1 targeting S3 (126.10), that is 0% Fibs. Only a
daily close above R2 (131.29) should immediately change the downtrend into a
short-term uptrend, but this scenario has a very low probability at this point.
Support: 129.30, 128.08,
Resistance: 130.30, 131.30
The material has been provided by InstaForex Company – www.instaforex.com