On monthly chart of CHFJPY we see a correction of last bearish impulse. Continuous growth has been going on for three months and was initiated by bullish pinbar shown below:
Last week, resistance at 115.30 was broken and dynamic growth impulse pushed price to supply zone between 117.40 – 119.00. Additionally inside this zone is placed level of 50% abolition of aforementioned impulse from the monthly chart.
Below we see daily chart and a price struggling with level 117.40, where price closes once over it and once below it.
The above-mentioned fight between demand and supply is better visible on 4-hour chart below. Despite last week’s attempts, we have not managed to break level 117.77 yet. From below, support is provided by trend line and local horizontal area near 117.00.
A successful close under 117.00 will open the way for further drops to 116.20 and if that level is also breached we will have a deeper correction, where nearest target is 115.13 (50% abolition of recent gains from D1 and earlier resistance).
