CHF/JPY: Swiss Yen free falling from the Highs
The Swiss Franc currently trading at 110.120 against the Japanese Yen towards the end of today's London session.
Following up from my previous article we saw nice rejection from our descending trendline lining up with our daily resistance at 112.000. After forming a hanging man at the highs we fell a good 180 PIPs breaking back below our weekly key-level as well as a break of our ascending counter trendline.
Where to next do you ask? Looking at the Daily we can see the price is currently taking a breather after such a sharp fall. Dropping down to a 4-hour we can see that price is currently trapped in a minor area of consolidating where I am looking for a break before taking a position on this pair. If we break to the upside I am looking for lower swing high which will be a better place to sell from as illustrated in the screenshot above!
Our next level of support for the pair is in and around the middle of the flash-crash low at 108.000 where I would be targeting next for the pair. My only concern for this position remains the fact that the US & China trade deal have not yet been sorted out and thus affecting overall risk sentiment which influences the Japanese Yen. So what would invalidate this position for myself would be a break back above our minor daily resistance at 112.000.
What other pairs do you want to see on the Technical Floor? Comment below!