CHFJPY Short Into Rallies

Nenad Kerkez

Japanese Yen surged after safe heaven flows confirmed a move to USD and YEN. BOJ governor Kuroda also implied that the economy is recovering at the moderate pace, so the interest in safe heaven JPY has sparkled again.

CHFJPY is in downtrend following the bearish equidistant channel. Pullbacks towards 130.55-80 could be used for short entries as we could see a confluence point (POC) which consists of DPP, 50.0 and the top of equidistant channel line. Additionally this is a bearish zig zag inside the equidistant channel.

H4 ( 4 hour ) close below L4 support -128.80 would target 128.00 and the break below 128.00 will target -127.50 which corresponds to rounded number support and L5.

CHFJPY 4 Hour Chart