CHFJPY – Sentiment remains negative

6th June 2016

I have written before on these pages of the negative sentiment that has dominated CHFJPY  for a year now. 

This trend has been highlighted by a ‘hugging’ of the lower band of a falling weekly Keltner channel, by the capping of rallies by the mid-point of that channel, more clearly by the 21 week moving average and also by a gradual decline in RSI readings (capped by it’s own moving average.

CHFJPY_RSIThis scenario remains intact with rallies in CHFJPY since our last article continuing to be limited. Targets have been met and the latest rally has enabled more up to date targets to be drawn.

It is also clear from the charts shown that when CHFJPY sellers emerge their actions are more dynamic that profit taking rallies. This is graphically shown in our second chart which shows DMI – an indicator showing a percentage of higher weekly highs and measured against lower lows.

CHFJPY_DMIThat indicator gave a negative reading last August and has remained that way since.

With no sign yet of a change in RSI, DMI or even a significant bounce from the bottom of the Keltner channel, negative sentiment should continue to dominate with an immediate target of 108.12 then towards 105.29.

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