Trade of the Day: CHF/JPY

By: Dima Chernovolov

CHF/JPY continues to fall toward the key support level 141.24, 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 six earlier price reversals from this price level. CHF/JPY is expected to continue to fall toward the key support level 141.24.

As can be seen from the daily CHF/JPY chart below – the pair earlier reversed down with the daily candlestick pattern Evening Star from the key resistance area located at the intersection of the key resistance level 143.00 (which has been reversing the pair from the end of June) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability CHF/JPY will continue to fall toward the key support level 141.24.