CHFJPY has been in a flying mode over the last six days and today, it recorded a new 13-month peak of 114.30. The RSI entered the overbought territory and is still pointing up, while the MACD surpassed its trigger line with strong momentum.
To the upside, the pair needs to overcome today’s top (114.30) to meet a key barrier near 114.60, registered on December 2018. The 118.05 mark could act as resistance too before a more important battle starts near 118.55, taken from the highs on January 2018.
In the negative scenario, a bearish retracement could meet support at the 112.60 level, taken from the previous previews highs and then could hit the 23.6% Fibonacci of the upward wave from 106.70 to 114.30 around 112.50. The upward sloping 20-day simple moving average (SMA) could halt downside movements near 112.20.
To sum up, the climb above the 112.60 barrier has shifted it shifts the trend from neutral to bullish in the medium-term, and this is confirmed by the technical indicators.
