From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with 5/15 minutes.
After ongoing since June 2015 depreciation CHFJPY reached a very important support around 104.00. The rejection of this level would be a signal for the continuation of the previous upward trend. However if decline overcomes the current zone we should pay attention to another very important level of 100.50, which was a strong resistance almost from the start of trading of that instrument.
Historical minimum was established in September 2000 and is located at 58.75 while the peaks are the result of the Black Thursday of January 2015 and are located at the level of 157.53.
If we look at Fibonacci levels we find that today we reject a cluster of 61.8% from the last movement and momentum 50% Fibonacci correction of whole bullish movement. In addition, this level very precisely coincides with previous resistance which only increases its value as an important support.
On weekly chart we see that the market is currently testing the downward trend line breaking which could open way for bulls even to the area of 111.55.
On the daily chart we see that long lasting from June 2015 declines are within the downward channel from which one false breakout was quickly negated. In addition on the way to change of attitude to the bull market is that the trend line is also the local resistance 106.25, which broken would create new higher high and that would be the first sign of a change in market attitude.
On H4 chart we see lasting for almost five weeks ascending trend which in combination with the upper limit of downward channel from the D1 chart forms a triangle formation. Given the angle of both lines, solution of this issue in any of the contra entries we expect later this week.
On the H1 chart for three days we observe sideway movement, the lower limit is the local support coinciding with the level of 61.8% Fibonacci correction of previous increases.
On the M15 chart we see more accurately the current consolidation. If in the near future demand will reject its lower limit, the increase could even reach the level of around 105.58.
Overcoming this level could instead open the way for further declines, but should not be too strong because its located near the uptrend line (see H1 chart).