As a result of recent increases CHFJPY exchange rate reached vicinity of resistance level at 115.25, where a strong supply response occurred just over a week ago. Since then, we have seen slow declines. It is worth noting that a permanent rejection of this zone could create the right arm of bearish head and shoulders formation and if the current trend continues, in near future we would expect pair to re-test the support at 112.60 which is the neckline of that formation.
On H1 chart, as a result of these declines, the market has already beat local support yesterday, which was rejected after retest from the bottom (as a resistance). This fact supports bearish scenario.
To take advantage of the analysis and invest now, please check out HotForex Broker’s offer
