CHFJPY – Bear trend targets 111.87
26th January 2016
A bearish trend was confirmed in CHFJPY last August when the spot price closed below the 21 week moving average – RSI had broken it’s relevant moving average 3 weeks before.
Since that time the cross has deteriorated by almost 11 big figures with the key moving average only threatened on two occasions (Aug & Dec) but a positive interpretation was not confirmed by an RSI break. (RSI had its own threat as November turned into December, but this went unconfirmed by the spot price.
These double indicators show how important perspective is in any analysis of such a trend.
The failure at December’s highs, and the moving average line turned into more aggressive CHFJPY selling as we moved into 2016 and although last week, and this so far, has seen consolidation at oversold extremes, there is no sign yet of anything other than temporary and limited rallies.
So we continue to look to the downside with relevant Fibonacci projected targets at 114.20, 111.87 or even 108.12.
