{"id":53407,"date":"2014-06-27T10:47:41","date_gmt":"2014-06-27T14:47:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=53407"},"modified":"2014-06-27T10:47:41","modified_gmt":"2014-06-27T14:47:41","slug":"jpy-leads-yet-chfjpy-still-struggles-to-resume-downtrend","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/jpy-leads-yet-chfjpy-still-struggles-to-resume-downtrend\/","title":{"rendered":"JPY Leads Yet CHF\/JPY Still Struggles To Resume Downtrend"},"content":{"rendered":"<div id=\"inves-2956976960\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 27, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>Technical Sentiment: <span style=\"color: #ff0000;\"><strong>Bearish<\/strong><\/span><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<ul>\n<li>CHF\/JPY continues to trade in a tight range, squeezed between two large moving averages;<\/li>\n<li>Lower High at 114.25 confirms the main bias remains bearish;<\/li>\n<li>A firm daily close below 113.40 indicates more losses for the pair next week.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>The Japanese Yen was the leading currency in the Asian and European sessions, as Core Consumer Prices rose 3.4% in May from a year earlier and Unemployment Rate dropped to 3.5%. Now that CHF\/JPY dipped for a second time to test the 200-Day Moving Average, it remains to be seen if traders can break outside the consolidation area.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p><a href=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/06\/CHFJPY-27th-June.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4584\" src=\"http:\/\/capitaltrustmarkets.com\/wp-content\/uploads\/2014\/06\/CHFJPY-27th-June.png\" alt=\"CHFJPY 27th June\" width=\"700\" height=\"331\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">Since the initial double bottom pattern formed in May and the rejection off 114.96, CHF\/JPY has been trading in an increasingly tighter range. The pair is being squeezed between two large moving averages on two different timeframes: resistance is marked by the 200 Simple Moving Average on the 4H chart, while the 200-Day Moving Average is being respected as support. Although the recent Yen strengthening is favoring a bearish break at the moment, price action confirmation is crucial for a break-out scenario such as this one.<\/p>\n<p style=\"text-align: justify;\">For a downtrend continuation play it is imperative we see CHF\/JPY closing below 114.40. A 4H bar close below this level may suffice then a Daily close will seal the deal. This will immediately open the way for 4<sup>th<\/sup> test of 113.02\/05 area. Stochastic has yet to reach oversold territory on the 4H and Daily time frames, indicating there is plenty of leg room for a dip. On a break below 113.02, the downtrend will fully resume with targets in the 111.60\/80 area.<\/p><div id=\"inves-18173428\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p style=\"text-align: justify;\">Bullish scenarios should be considered only on a break above 114.24. A rally above this cluster (most recent Lower High, the 200 SMA on the 4H chart and 61.8% Fibonacci retracement from 114.96 down to 113.05) will continue all the way up to 114.96-115, with a longer term possibility of reaching 116 for a complete retracement of the downtrend that began in March.<\/p>\n<p style=\"text-align: justify;\">*********<\/p>\n<p><em>Prepared by Alex Z., Chief Currency Strategist at <\/em><a href=\"http:\/\/www.capitaltrustmarkets.com\/\"><em>Capital Trust Markets<\/em><\/a><\/p>\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Technical Sentiment: Bearish Key Takeaways CHF\/JPY continues to trade in a tight range, squeezed between two large moving averages; Lower High at 114.25 confirms the main bias remains bearish; A firm daily close below 113.40 indicates more losses for the pair next week. The Japanese Yen was the leading currency in the Asian and European [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53407","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53407"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53407\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}