CHFJPY last week once again tested the key resistance area at 112.00 . As can be seen in the daily chart below, after two days of attempts to set new maximum, on Thursday the supply side entered the market and pushed the price down to the 20-day moving average.
In turn, after switching to a 4-hour chart, we see that sellers are currently grappling with local support area of 110.70. Its defeat could open the way for further falls towards the key zone located between 108.50 – 109.00. Alternatively, if local support can withstand, we can expect a re-attack on resistance at 112.00 in the near future. After its breakthrough, buyers could take a 100-pips course higher, to the SR zone (113.00), which this year already proved to be resistance, and last year few times played role of support.