© Dukascopy Bank SA
Being unable to push through the support at 104.99, CHF/JPY started to move in the opposite direction, namely upwards. As a result, it formed a rising wedge on an hourly chart. And even though the pattern has been already broken to the downside, there are still ways to make use of it, since the price has not yet gotten far from the point where it breached the up-trend. Both two most likely scenarios involve eventual erosion of the support at 106.12. In the first one the pair pierces it without hesitation in the nearest future, and in the other pulls back up to 106.68 before making another attempt to violate this level and only then succeeds.
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