Daily Forex Update: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to fall inside the uniform Descending Triangle chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this Descending Triangle at the 3-bar level – which is the result of the slow Initial Trend (2 bars), average Uniformity (5 bars) and lower Clarity (2 bars). CHF/JPY is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the major resistance zone shown below.

As can be seen from the weekly CHF/JPY chart below, the price earlier reversed down from the major resistance zone lying between the key resistance level 112.00 (which also reversed the price in March and April) and the 38.2% Fibonacci correction of the previous weekly impulse from January. The proximity of this resistance zone increases the probability CHF/JPY will continue to fall inside this Descending Triangle.

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