- CHFJPY reversed from key resistance level 117.85
- Likely to fall to support level 116.00
CHFJPY continues to fall strongly inside the sharp downward correction (ii) – which started earlier exactly from the key resistance level 117.85 (which stopped the sharp uptrend at the end of August as can be seen below) – strengthened by the upper daily Bollinger Band. The active correction (ii) belongs to the short-term upward impulse sequence 3 from the end of November.
Given the strength of the resistance level 117.85 and the growing risk-on sentiment which is driving strong Swiss franc sales across the FX markets – CHFJPY is likely to extend the losses toward the next support level 116.00 (former top of wave (b) from November) – intersecting with the 38.2% Fibonacci correction of the upward impulse from September.