Daily Forex Update: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to fall inside the daily Descending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 4-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and medium Clarity (4 bars). CHF/JPY is expected to fall further inside this Descending Triangle – in line with the earlier downward reversal from the powerful resistance zone shown below.

As can be seen from the daily CHF/JPY chart below, the price earlier reversed down from the strong resistance zone lying between the pivotal resistance level 112.00 (which has been reversing the price from April), upper daily Bollinger Band and the 38.2% Fibonacci correction of the previous downward impulse from last February. The proximity of this resistance zone increases the probability CHF/JPY will continue to fall inside this Descending Triangle.

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