CHF/JPY: Is the Pair Producing a Double Top at a Pivotal Resistance?

• CHF/JPY has been choppy on the H4 chart having its 2^nd rejection at a significant resistance.
• The pair trades above the simple moving average 30.
• The H1 chart has been bearish approaching a support.

CHF/JPY – Technical Analysis- H4 chart

The H4 chart shows that the price had its second rejection at 169.300. The pair reacted at this level earlier as well. Thus, the sellers may keep their eyes on the pair to go short. However, the simple moving average 30 has been working as one of its supports. As it stands, the pair may find trade around the SMA 30. A breakout below that support may generate bearish momentum and drive the price towards the South. The pair may find its next support 167.300.

On the other hand, if the SMA 30 holds the price and ends up producing a bullish reversal pattern, the buyers may find long opportunities. The price may find its next resistance around 170.350, which is the last swing high.

Price Action Analysis- H1 Chart

The chart shows that the price has had multiple rejections at 169.300. At the last rejection, it produced an inverted hammer. Since then, it has been heading towards the South. As far as the H1 chart is concerned, the pair may find its support around 168.600. The sellers will be waiting for a breach at the level to drive the price towards the downside. The price may find its support around 168.100.

On the contrary, if the level of 168.600 produces a bullish reversal pattern, the pair may get choppy for a while. A breakout at the 169.300 may attract the buyers to push the price towards the North. The price may find its next resistance around 170.000.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News

Contact and follow Tareq on Twitter: @tareqfpn