CHF/JPY 4H Chart 8:05AM EST 11/7/2012
Consolidation: Since the October high at 86.35, the CHF/JPY has been consolidating in a sideways, slightly bearish range. This consolidation period follows a bullish period from a low of 78.34 in July. As we get into the 11/7 US trading session, the pair is trading down sharply, threatening a the rising trendline support that held price bullish since July.
Trendline breakout scenario: The daily chart shows the rising trendline being tested along with a previous pivot of 84.55. A clear break below 84.50 should signal further bearish correction. This should open up some fibonacci retracement targets. 38.2% is at 83.30, and 50% is at 82.35. A more aggressive target of 61.8% retracement at 81.40 is also a previous resistance/support pivot.
Holding below 85 would be a good sign that the market is respecting the topping development its been in since late October.
USD/JPY Daily Chart 8:13AM EST 11/7/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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