Selloff in Yen gathers momentum this week on the back of risk-on sentiment. Even CHF/JPY manages to accelerate to as high as 125.37. We’re seeing the correction from 125.48 has completed at 122.10 after drawing support from 55 day EMA. Immediate focus is now on this 125.48 resistance. Firm break there will resume larger up trend to 61.8% projection of 117.51 to 125.48 from 122.10 at 127.02.
The bigger question is whether there would be more upside acceleration after breaking through 125.48. The key channel is the long term channel resistance. Sustained break there could easily send CHF/JPY to 100% projection at 130.07. And that would be a strong signal of Yen weakness elsewhere. Nevertheless, rejection by the channel resistance will just keep the selling in Yen steady.
