Welcome to another AspireFX blog. Today we’ll do a top down analysis on CHFJPY as well as which news events will be key when considering this pair.
On the daily time frame we can see that we are trading around a crucial point of resistance labelled top end resistance. Any daily candle closures above this area would indicate further upside movement.
Looking at the 4 hour time frame we can see that we had 2 touches of the ascending trend line but we broke structure on the 3rd touch and we are currently seeing a retest of the trend line. For downward movement to continue, we’d have to reject and close below this trend line.
On the 1 hour time frame we’ve had one wick in the 78.6 retracement zone and would look for further candlestick confirmation before executing any setups.
From a fundamental aspect, the Swiss PPI index came out positive today and later this afternoon, Bank Chairman, Thomas Jordan, will speak. Be on the look out for any hints regarding future monetary policy or interest rate decisions. From the Japanese perspective, tomorrow morning there’ll be a Quarterly Outlook Report where the bank provides their view on monetary policy and economic conditions. There will be an interest rate decision for the Yen tomorrow as well which will most likely remain at 0.10%. The most important news event for the Yen this week will be the National Core CPI which will be released early friday morning.
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