Dukascopy Bank Team
Dukascopy Bank SA
CHF/JPY 1H Chart: Channel Up
Comment: For the past four weeks CHF/JPY has been fluctuating between 125.50 and 122.50, and right now the pair is attempting to exit this range through the upper boundary. If it succeeds, the next target will be the resistance trend-line at 126.54, which is currently reinforced by the daily R2 level. On the other hand, if the support trend-line at 124.43 is violated, the price will likely fall down at least to 124 yen, where the Apr 20 low coincides with the weekly pivot point. Additional demand is supposed to be at 123.50, where the daily S2 merges with the 200-hour SMA. Meanwhile, despite the bullish technical indicators, the SWFX sentiment is strongly bearish, as 73% of positions are short.
USD/PLN 1H Chart: Channel Down
Comment: The near-term bias towards the US Dollar is negative, considering that USD/PLN has recently formed a bearish channel, and the exchange rate is currently standing right next to the resistance trend-line. However, it merits mention that the technical indicators do not favour an immediate and prolonged decline, and the sellers seem to have trouble dealing with demand at 3.70. Once this support level is broken, the currency pair will be expected to target 3.65. Alternatively, if the price closes above 3.72, the outlook will be changed to bullish, with the first target at 3.74, followed by 3.7550. Still, the SWFX sentiment is bearish: as many as 67% of positions are short.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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