Technical analysis CHF/JPY
In the recent months, the CHF/JPY has been in a descending trend. As you can see in the below picture, after reaching the ascending trend line, the descending trend of the price has been stopped and the bottom price of 78.361 has been formed. The ascending trendís line consists of two bottom prices which have been formed in 2010 and 2008 and right now, it is considered as the most important supporting level for the price.The price is located in the saturation sell area. If the mentioned bottom price maintained, the possibility of ascend and reform of the price from the third point of ascending trendís line would increase.
In the daily time frame, the price has ascended from the formed bottom price, 78.361, of the ascending trendís line and it was stopped by reaching the red descending trendís line. However, due to closing of the ascending candle in the last week, and possibility of ascend of the price from ascending trendís line the price has returned to the descending trend line.Right now, in the daily time frame, by considering the recent movements of the price charts and indicator of MACD we can notice that they are in a divergence mode which issues the warning of formation of a bottom price and ascend of the price. To start ascending and reforming of the price, the price should break descending trendís line and pass it.