In the past few weeks, the CHFJPY cross was in an overall
bullish mode. Just above the price zone of 95.50, and before the price could
get to the supply zone of 96.00, further bullish bias was rejected. From this
phase, the price nosedived by around 150 pips (though not without some
intermittent rallies). Last week, the price fell below the Exponential Moving
Average 21, but the RSI period 14 did not fall below the level 50, which
revealed the price action as a false signal. This week, the price fell below
the EMA 21 again, and this time around the RSI period 14 plummeted below the level
50. It can be seen that the price has closed below the EMA 21: this is a ‘sell’
signal. One may target the demand zone at 90.00 – the stop might be put at the
supply zone at 96.00. The price is currently at 94.34.
Chart: 4 hour
Source: www.paxforex.com
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