Swiss Franc Rebounds Against Yen: After dipping below ¥168.50, finds strong support, forming a hammer pattern. Focus on overcoming 50-Day EMA, with upside target at ¥170.80 amid choppy trading.
Technical AnalysisNow that I look at the start, it’s obvious that we have a lot of support underneath and I think it’s probably only a matter of time before we take off to the upside. If we turn around and break above the top of the candlestick for the trading session on Friday, then we can challenge the 50-Day EMA. Breaking above there opens up the possibility of a move to the ¥170.80 level. After that, we have the 170 and level which was a major resistance barrier and the top in the market recently.Underneath, the ¥167 level is an area that offers a lot of support, right along with the 200-Day EMA underneath there. All things being equal, this is a market that every time we pull back, there will be plenty of buyers willing to get involved as although the Swiss franc is a weak currency, the reality is that the Japanese offer much less in the way of interest, and therefore I think that even though the Bank of Japan offered a short-term rate hike, the reality is that the Swiss still offer quite a bit more and therefore you get paid to hang on to this pair.In general, I expect to see a lot of noisy and choppy behavior, but I still favor the upside in the fact that we have pulled back a bit and bounced suggest that we might have a nice 2 or 3 day trade on her hand to the upside, but I don’t necessarily know that I’m expecting to see some type of massive breakout.More By This Author:Gold Forecast: Consolidation After Big MoveWeekly Forex Forecast – Sunday, March 24, 2024Ethereum Forecast: Continues to Attract Inflows
