Weekly Technical Outlook: CHF/JPY ; Market Forecasts for August 17th – August 21st
- Stop loss 125.90
- Entry level 127.09
- First Target at 129.37
- Next targets to test at 130.22, 130.76
Technical Analysis
CHF/JPY is looking for consolidation pattern from 126 and is still in progress with support holding the levels at price action producing two bar reversal indicating a shift in momentum to an upside bias with trend line support pair looking for corrective pattern. A retest at 127.09 level is needed to confirm an uptrend resumption.
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We’d likely see more corrective side way trading, entering above 127.09 while another rise is expected strongly. But we also need price action to confirm the bullish movement. The pair should reach level at 129.37, a break here can expect levels at 130.22 and later at 130.76. Meanwhile, we’re uncertain on the time needed to complete the consolidation and the strength of the rebound. But in any case, a break of 1.1145 however break of 125.90 will dampen our bullish view on the pair and should continue with the current momentum to downside and make new lower low. Outlook look remains sideways for week.
Economic
- Real Estate Sales
- Exports, Imports and Trade Balance for the Swiss
- Adjusted Merchandise Balance, Imports and Exports for Japan
- All Industry Activity Index, Coincident Index
- Leading Economic Index, Foreign bond Investment
- BOJ Interest Rate Decision
Area of Interest
- Strong support at 126.00 areas rebound from current levels.
- Bullish pattern confirmed with two bar reversal at support levels.
- Pair finding support on trend line and closed above the trend line support area.
- Key area to target to the upward bias shall be at 23.6 fib Levels
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