Dukascopy Bank Team
Dukascopy Bank SA
CHF/JPY 1H Chart: Channel Up
Comment: After the currency pair received strong bullish impetus from the 200-hour SMA on Feb 12, it has remained in the up-trend and formed an upward-sloping channel.
However, being that the upper rising trend-line has been confirmed only on few occasions, unlike the lower one, which has already proved to be reliable, there is still a possibility that CHF/JPY may be trading either in anUltimately, the sell-off may extend down to 88.24, Feb 3 low, considering that there are no important supports below the neck-line, only a few four-hour pivots. However, we must notice that the traders’ sentiment is explicitly bullish—73% of open positions are presently long. emerging ascending wedge or triangle. Accordingly, for now we would rather focus on the support at 114.92, which is supposed to withstand the selling pressure for any of the cases to be true. If it does not trigger buying, there are strong demand areas at 114.70 and 114.30.
AUD/JPY 1H Chart: Double Top
Comment: Being that an up-move observed in the first half of February has already twice failed at the level of 93, we may assume that AUD/JPY has formed a double top pattern that in turn increases the chance of a sharp decline in the nearest future. This pattern also implies a neck-line at 91.12, which needs to be breached for the bearish potential to be fully realised.
Ultimately, the sell-off may extend down to 88.24, Feb 3 low, considering that there are no important supports below the neck-line, only a few four-hour pivots. However, we must notice that the traders’ sentiment is explicitly bullish—73% of open positions are presently long.
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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