CHF/JPY may fall 74 - 109 pips

Our pivot point stands at 174.18.

Our preference

The downside prevails as long as 174.18 is resistance.

Alternative scenario

The upside breakout of 174.18, would call for 174.77 and 175.13.

Comment

The RSI is below 30. It could either mean that the pair is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 174.33 and 174.24). Finally, the CHF/JPY has penetrated its lower Bollinger band (173.63).

Supports and resistances

175.13 **

174.77 *

174.18 **

173.95

173.48 last

172.74

172.39 **

172.04 *

171.68 **

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