CHF/JPY:  Confluence Level is Under the Spotlight

• CHF/JPY has been having a strong bearish correction on the H4 chart.
• The pair trades around a confluence level as of writing.
• The H1 chart looks bearish making a bullish correction.
• Intraday minor charts have been bearish.

CHF/JPY – Technical Analysis- H4 Chart

The chart shows that the price has been having a bearish correction after being very bullish earlier. As of writing, the pair trades around the simple moving average 30 and a horizontal support at 170.150. If the level produces a bullish reversal pattern right there where it is traded now, it may be considered as a bullish signal at a confluence level. Thus, it may generate bullish momentum again and push the price towards the North. The price may then make a new higher high and find its resistance around 172.000.

On the downside, if the price breaches the level and confirms the breakout, it may get bearish instead. Since it is going to be a breakout at a confluence level, it may generate good bearish momentum too. The price may find its support around 166.800.

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it produced a bullish engulfing candle and headed towards the North with good momentum. On its way, it made a breakout at 170.800. The price then has started having a bearish correction. As of writing, the pair trades right around the support of that trend line again. Moreover, it has produced a morning star. It is a strong signal for the buyers to go long and push the price towards the North. The price may find its next resistance at the swing high.

A breakout below the trend line may attract the sellers to go short. As things stand with the pair, the price action suggests that bull may come into play and dominate in the pair again.

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

Contact and follow Tareq on Twitter: @tareqfpn