FX.co ★ CHFJPY Potential For Bounce | 14th Dec 2021

Prices are consolidating in a triangle. We see potential for a bounce from our 1st support at 123.104 which is a graphical overlap and in line with 50% Fibonacci retracement towards our 1st resistance at 123.501 in line with 78.6% Fibonacci retracement and 78.6% Fibonacci extension. Breaking the 1st resistance will find prices climbing further towards our 2nd resistance at 123.707 in line with 100% Fibonacci extension. Technical indicators are showing bullish momentum. Alternatively, our stop loss will be placed at 2nd support at 122.687 in line with 78.6% Fibonacci retracement and in line with our ascending trendline.

Trading Recommendation

Entry: 123.104

Reason for Entry:

Graphical overlap and in line with 50% Fibonacci retracement

Take Profit: 123.501

Reason for Take Profit:

78.6% Fibonacci retracement and 78.6% Fibonacci extension

Stop Loss: 122.687

Reason for Stop Loss:

78.6% Fibonacci retracement and in line with our ascending trendline