CHFJPY: Cross at Important Crossroads

The CHFJPY cross has been creating an interesting formation lately and, was trading flattish on Thursday, while hovering at around 115.40.

It has been in a short downtrend since September 24^th and the price is limited by the bearish trend line, which currently stands at 115.60. The price has dropped to previous highs within the 115.00 area, which is a very strong demand zone and, therefore, the latest bearish wave could end here as the price is already in the process of recovering.

The bearish trend could end if Bulls manage to conquer the mentioned bearish trend line at 115.60. The next target for the upside wave would be around 116.45.

On the downside, should the demand zone crack at around 115, we could see another downward move to another major support at the 114 level.

Volatility seems to be declining slowly, which means once there is a break from this consolidation period, price movements might accelerate again.

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