I'm seeing a textbook trend setup on the hourly chart of CHF/JPY!
Here are the levels where buyers might be waiting to hop in.
CHF/JPY: 1-hour
This pair has been making higher lows over the past couple of weeks, and these dips can be connected by an ascending trend line.
Another test of support might be in order, as CHF/JPY retreated from the highs at the 146.00 major psychological mark.
So where are buyers hanging out?
The Fibonacci retracement tool shows nearby support zones at the 38.2% level or 144.50 minor psychological mark and 50% level closer to the 144.00 handle.
A larger correction could reach the 61.8% retracement level at 143.60, which happens to be right smack in line with the trend line support and 200 SMA dynamic support.
If any of these hold as a floor, we just might see CHF/JPY recover to the swing high and beyond!
The 100 SMA is above the 200 SMA to confirm that bullish vibes are present, and the gap between the moving averages is widening to signal strengthening upside pressure.
At the same time, Stochastic is already on the move up, so price could follow suit while bullish momentum is in play.
There's not much in the way of top-tier events from both Japan and Switzerland over the next few days, though, so any big moves could hinge on overall market sentiment.
I'm still counting on additional volatility before the end of this trading week since traders could book profits ahead of the long weekend!
