CHF/JPY forecast for February 23, 2021
Looking at the chart on the weekly time frame, we see that the CHF/JPY pair managed to break above 118.00 for the first time since 2018, but now we are currently seeing a pullback from that level to the current 116,930. As first support, we look at moving averages of MA20 and EMA20 around 116.00. The Bearish scenario is currently in effect, and we can expect it in the coming period. The MA50 is some maximum target based on this now state on the chart to 115.00.
On the daily time frame, the picture is clearer where the bearish trend came to the fore, we have a break below MA20, EMA20, and now we are currently testing MA50. Viewed in this way, we go down to 116.00, where we will meet the MA200 and EMA200, where we can expect potential support. For the bullish scenario, we have no signs for the last week, and for now, we have to wait for something like that.
On the four-hour time frame, we see a break below all moving averages. Based on that, we can expect a continuation of the bearish trend and look at the previous low at 116.50, and after that, if we see a continuation, we go down to 116.00. By setting the Fibonacci retracement level, we can monitor the levels of pullbacks, and the CHF/JPY pair is now testing the 38.2% level at 116.90. Technically, the continuation is evident, and therefore we can look for better support at 61.8% Fibonacci level at 115.70.
From the news for these two currencies, we can single out: Japanese service producers’ prices fell for the fourth month in a row in January, according to data released by the Bank of Japan yesterday.
The producer price index for services fell 0.5 percent year-on-year in January, after falling 0.3 percent the previous December.
On a monthly basis, producer prices fell by 0.6 percent, after rising 0.2 percent in the previous month. This was the fourth consecutive month of decline. Swiss producer and import prices reached 0.3%, above forecasts (0.1%) in January.
