Technical analysis of CHF/JPY dated 25.04.2013
CHF/JPY during the recent months and from the bottom price of 78.272 was in a strong and without reformation ascending trend that buyers could record the top price of 107.413. Price stopped by reaching to the important resistance level of 107.115 (related to the date 09.08.2011) and after trying to break this resistance level twice that was unsuccessful, the price created a top price under that level.
Beside the mentioned resistance level, as it is obvious in the picture below the Fibonacci level of 2.00 is also one of the target prices of buyers during the ascending of price and when the price reaches to this level, by cashing the buyers’ trades the price has dropped. According to the formation types of price movements on the chart, there is a descending Butterfly harmonic pattern and by completion of the D point of this pattern, there will be a warning for descending and changing price direction. In Weekly time frame in the previous week, the weekly candle appeared as a Hanging Man candlestick pattern (to notice this candlestick pattern, there is a need to a descending candle as confirmation) that shows the possibility for formation of a top price and ending up the ascending of the price).
RSI indicator is in saturation buy area and it is in divergence mode with the price chart that warns the potential for changing price direction. Generally according to the formed sign in the price chart until the top price of 107.413 is preserved, the price has the potential for descending in this currency pair.