Forex Technical Update

CHF/JPY 4H Chart 8:05AM EST 11/7/2012

CHF/JPY 11/7/2012 4H chart

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

CHF/JPY 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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

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