CHF/JPY: Bull Has an Edge

• CHF/JPY trades above the SMA 30 on the H4 chart.
• The pair had a bearish correction and seems to have found its support.
• The H1 chart has found its support and headed towards the upside.
• Intraday minor charts are yet to find their direction.

CHF/JPY – Technical Analysis- H4 Chart

The chart shows that the price had bounced twice at the support of the SMA 30. At the last bounce, it produced a bullish engulfing candle and made a strong move towards the North by producing consecutive bullish candles. It had a strong rejection at a pivotal resistance as well. Upon producing a bearish candle, it continued its move with one more candle. As of writing, it has been on consolidation. The buyers may look to go long on bullish reversal signal. The price may find its resistance again around 171.700.

On the contrary, the sellers are to wait for the chart to produce a strong bearish reversal pattern to look for short opportunities based on this chart.

Price Action Analysis- H1 Chart

The chart shows that it made a strong bearish move upon producing a bearish engulfing candle. The price moved towards the South with consecutive bearish candles. The level of 170.650 has held the price as a support and produced a bullish Marubozu candle. Since then, it has been gradually heading towards the North. The buyers may look to go long in the pair upon having bullish reversal signal from the value areas.

On the contrary, if the price breaches the support, the sellers may look to go short following breakout confirmation and a bearish reversal signal. In that case, the price may find its support around 170.000.

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

Contact and follow Tareq on Twitter: @tareqfpn