CHF/JPY embracing an extended bearish trend as the price drops below key support and ranging zone

The price of CHF/JPY has been in an uptrend for the last couple of years. The price reached an all-time high on 29th January 2024 and price since then has been in a ranging zone between 171.500 resistance and 169.500 support. However, the price breached the 169.500 support yesterday and closed below the ranging zone.

This could be the start of an extended bearish trend on CHF/JPY that could last for months or even a year. The price is likely to make a correction and retrace back to the 160.340 resistance level after the recent drop.

I am considering the 160.340 resistance level for sell entry as it is a key resistance level and it has been a strong support previously. Besides the is a bullish order block around the same price and there are long bearish candles with imbalances and fair value gaps that will push the price down. My target for this trade is the 162.300 support level. This is a swing trade and can last for a couple of weeks or even a month.

Fundamentally, the price is likely to remain stable and follow the price action as there are fewer fundamental events this week that can have a major impact on the price of CHF/JPY.

However, I would recommend watching this trade while the NFP data is published on the US dollar this Friday as the market might witness higher volatility in those hours.

• CHF/JPY is likely to drop further as the price drops below key support and ranging zone.
• The price will probably drop to the 162.300 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.5.
• The entry and stop-loss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

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