CHF/JPY Opportunity for long positions with a good risk/reward ratio

CHF / JPY H4 Our expectations - Medium-term consolidation, the price is making higher lows, however the highs remain in one zone. Price at support levels. Opportunity for long positions with stop 110.43.

Alternative scenario: If the price fails to keep its current levels and drops below the horizontal support zone, a downward breakthrough of the consolidation is possible, in which case we can position a ourselves short after a confirmed break test.

Comment: Medium-term consolidation, the price is making higher lows, however the highs remain in one zone. The price has made 3 attempts in the past to break through support, but buyers have intervened and managed to raise the market to the resistance zone. Horizontal and diagonal support levels also coincide with 61.8% Fibonacci, making them even more significant. By textbook, 61.8% Fibo is the last support for the trend, after which the breakthrough is believed to have turned the trend. Formed pin bar at support levels, as the current 4-hour bar has an impulse upwards. CCI 50 with breakthrough level -100 from oversold levels back on the way up - a positive signal that buyers are interfering. For a more precise entry, we wait RSI 14 to break through level 50, indicating that the market is back in the positive direction.

SL: 110.43

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