CHF/JPY on a strong support level

Next few candels are of high value

CHF/JPY has been growing within an ascending channel since late 2019. The previous leg, which was an ascending one, started on 20th of September 2021 and could elevate the price from the base of the channel to the top line. After touching the top line of the channel, the price line started a descending leg. At the moment, the price line is touching the support level on level 0.236 of the Fibonacci retracement.

            Chart Notes: 

           • Chart time-zone is UTC (+03:00)

           • Candles’ time-frame is 4h.


Level 0.236 of the Fibonacci retracement has pumped the price several times in the past and is considered as a strong support level which lays at 123.42. RSI indicator is showing positive divergence; meanwhile MACD is showing the start of a weak descending wave. In case the price line breaks below the support level, sellers can enter the market. They target  122.6 as their first TP and 122.035 as the next one. The other possibility would be the maintenance of the support level; if the support level can pump the price once more, bulls can enter the market. 124.4 could be considered as the first TP for buyers and 125.26 as the next one. Traders should keep a sharp eye on the next few candles to get a buy or sell signal. 

• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.