Weekly Technical Outlook: CHF/JPY; Market Forecasts for August 31st – September 4th

• Stop loss    124.85
• Entry level   125.97
• First Target at 127.11
• Next targets to test at 127.72, 128.23

Technical Analysis

 

CHF/JPY is looking for consolidation pattern from 125.00 levels and is still in progress with strong support holding the levels. The price action produced two bar reversal indicating shift in momentum to upside bias with trend line support pair rebounding from 125.00 area and looks for corrective pattern; a retest of 125.97 is needed to confirm up trend resumption. We’d likely see more corrective upward bias trading entry above 125.97 while another rise is expected strongly with price action confirming the bullish movement with two bar reversal pair reaching at 127.11 level. A breaks here can expect levels of 127.72 and later at 128.23.

Meanwhile, we’re uncertain on the time needed to complete the consolidation and the strength of the rebound. But in any case, break of 124.85 levels will dampen our bullish view on the pair and should continue with the current momentum to downside and make new lower low. Outlook remains bullish for week.

Economic

• KOF Leading Indicator for the Swiss
• Consumer Product Index
• Foreign Bond Investment for Yen

Area of Interest

• Strong Support at 125.00 areas rebound to upward bias.
• Bullish pattern confirmed with two bar reversal at Support levels.
• Pair finding support on the trend line and closed above the 125.00 level and trend line.

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