A longer-term trend in the CHF/JPY pair is clearly downward, although after reaching a lower low on November 30, the price skyrocketed. Such move could suggest that bears fixed their profit and now bulls are gradually taking over the market.
After the sharp rise, the price retraced back to test 38.2% Fibonacci retracement level, which was successfully rejected after several attempts to break below.
As the support S1 is holding, consider buying CHF/JPY at the current level targeting potential double top near R1 (124.00) area. Stop loss should be well below the most recent low hit on December 28.
Support: 122.00
Resistance: 124.00
