CHF/JPY may fall 74 - 107 pips

Our pivot point stands at 175.70.

Our preference

The downside prevails as long as 175.70 is resistance.

Alternative scenario

The upside breakout of 175.70, would call for 176.26 and 176.60.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 175.92 and 176.28). Finally, the CHF/JPY has penetrated its lower Bollinger band (175.22).

Supports and resistances

176.60 **

176.26 *

175.70 **

175.48

175.18 last

174.44

174.11 **

173.77 *

173.44 **

Number of asterisks represents the strength of support and resistance levels.