It seems the Swiss Franc is currently the more attractive option for a safe haven currency than the Japanese yen, even though the later one is still not giving up, if we compare it to its other major counterparts. CHF/JPY continues to push higher, trading above its short-term upside support line drawn from the low of the 16th of November. From the short-term perspective, as long as that line remains intact, we will stick to the upside.
A strong move above the 113.85 level could open the path towards the higher levels that were last tested in the beginning of October. CHF/JPY could easily travel towards the 114.23 hurdle, marked by the high of the 10th of October. If that area won’t be able to calm the bulls down, a further acceleration of the rate may lead the pair to a test of the 114.85 resistance zone, which held the rate down on the 8th of October.
The RSI and the MACD are currently both in support of the upside scenario. The RSI is above 50 and continues to point higher. The MACD is also leaning more towards the upside, as it remains above zero and has moved above its trigger line.
Alternatively, if the Japanese yen starts picking up much more interest than the Swiss Franc, we could see CHF/JPY sliding below the aforementioned short-term upside line. But in order to get more comfortable with seeing this pair aiming for lower levels, we would need to see a drop below the 113.30 obstacle. This way, the path could be cleared for a re-test of the 113.05 level, marked by yesterday’s low. If that level won’t be enough to withstand the bear-pressure, a further decline to the 112.60 area could be possible.
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