In addition to the strong rally in Dollar and Yen this week, the selloff in Swiss Franc is worth a mention. In particular, the risk of bearish reversal in CHF/JPY is increasing. That’s put into context that 122.74 short term top was already in proximity to a key long term level at 100% projection of 101.66 to 118.59 from 106.71 at 123.64.
Focus is now on 38.2% retracement of 113.73 to 112.74 at 119.29. Rebound from this level will at least maintain some medium term bullishness for another rise through 122.74 at a later stage. However, firm break of 119.29 will add to the case that whole pattern from 101.66 has completed. Focus would then be turned to 55 week EMA (now at 116.89) for confirmation.
