CHF/JPY Breaks The 107.30 Support And Starts A Short-Term Sell Signal
Admirals | Oct 07, 2013 07:30AM ET
Composed of two “safe havens”, the CHF/JPY is getting out of the side trend that lasted for the past two weeks after the bulls broke the 107.40 resistance (lower red line). The upswing stopped below 109.40, and currently, this area will be the major long-term resistance. After the bullish breakout, the price created a flag which is normally considered as a good place for opening long positions with lower prices. Unfortunately for buyers the flag was broken after the weekend, and on Monday the market opened below 107.30, which can be very negative for bulls.
The uptrend is still supported by the green line, and further rise should still be the base scenario for this pair. The next days look more bearish, so we should expect that the price will reach this green line as a support. If this is broken, the positive long-term scenario should be switched into a negative one which will start a long-term correction on this pair.
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