FX.co ★ CHF/JPY: larger drop below 167.14

CHF/JPY Overbought!

The CHF/JPY pair is located at 167.50 at the time of writing. As you can see on the H1 chart, the rate moves somehow sideways. It has changed little, that's why we need confirmation before taking action again.

Technically, the price dropped below the uptrend line, signalling exhausted buyers and an overbought market. Personally, I've drawn a minor downtrend line which represents an upside obstacle. As long as it stays below it, the EUR/USD pair could develop a larger drop. Only, jumping and stabilizing above the downtrend line may announce an upside continuation and invalidate the downside scenario.

CHF/JPY Trading Scenario!

Dropping below 167.14 opens the door for a larger drop. This scenario brings new selling opportunities.