Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY recently broke the 30-minute key support level 117.75 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 6-bar level – which is the result of the 6 earlier price reversals from this price level. CHF/JPY is expected to fall further toward the forecast price 117.40.

As can be seen from the daily CHF/JPY recently chart below – the price earlier reversed down from the powerful resistance zone lying between the key round resistance level 118.70 (which topped the sharp uptrend in February) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability CHF/JPY will continue to fall toward the forecast price 117.40.