FX.co ★ CHF/JPY Signs of Reversing the Downward Trend January 05, 2011 (Daily Strategy)

CHF/JPY

After an impressive upwards movement that led the Swiss Frank – Japanese Yen pair to the 88.00 high, we can predict a reversal of the positive trend and move to a wave of downwards movement, especially due to the fact the pair has failed twice to breach the major resistance level at 88.00. That said, the daily graph on the pair shows that the 86.25 strong support level is closing in on the pair from below.

The two strong levels surrounding the pair have caused it to move in a shuffle, though we estimate that it is only a matter of time before the pair breaches the support level, beginning a new downwards trend. While the final goal for the expected downwards movement is positioned only at 82.30, the pair is expected to meet the secondary weekly support level around 85.15, which will serve as a test on its way down.