CHFJPY had a bullish start on Monday, with the price remaining above the 20- and 40-simple moving averages (SMAs) in the daily timeframe. These lines are ready to post a bullish crossover in the near future, suggesting that the recent rebound on the ascending trend line could continue. The RSI indicator is pointing slightly up in the positive zone, while the MACD oscillator is rising higher with weak momentum.
On the upside, resistance could occur around the 113.85 barrier, while a successful break of this level could retest resistance around 115.60 before eyes turn to the 118.00 handle, taken from the high on September 21. Higher that, the 118.50 barrier, registered on February 2, could be the next target.
A reversal to the downside, could find obstacles near the 20- and 40-SMAs, near the 113.00 handle. Falling lower, bears are eagerly awaited to retest the medium-term ascending trend line, where a decisive close below this line, could indicate that the rally off 108.50 might be running out of steam, with traders probably looking for support first at the 112.20 mark and then at the 111.50 level.
Overall, looking at the long-term timeframe, CHFJPY has been trading in a sideways channel since November 2016 with upper boundary the 118.50 barrier and lower boundary the 108.00 region.
