Market NewsTechnical Analysis

CHF/JPY: A Bullish Trend Line is in Play

  • CHF/JPY has been bullish by obeying a trend line.
  • The pair trades above the simple moving average 30.
  • The H1 chart looks choppy trades around today’s lower low.
  • Intraday minor charts have been choppy.
CHF/JPY H4 Chart
CHF/JPY H4 Chart

CHF/JPY- Technical Analysis-H4 Chart

The pair has been moving towards the North with a good momentum. A bullish trend line has been working as a support. Moreover, the simple moving average 30 has been pushing the price towards the upside as well. Thus, the buyers may be very keen to go long from the value areas. As of writing, the pair seems to be having consolidation. It would attract more buyers to keep their eyes on the pair to push the price towards the upside if the pair produces a bullish reversal pattern.

Defensive buyers may be waiting for the price to reach at the trend line’s support and produce a buy signal. That would obviously offer lucrative risk-reward. The price may find its resistance around 170.300.

On the downside, the sellers must wait for the price to make a significant bearish move or to make a bearish breakout at the trend line to look for short opportunities.

CHF/JPY H1 Chart
CHF/JPY H1 Chart

Price Action Analysis- H1 Chart

The chart shows that after being bullish for a long time, the price had a bearish correction. It found its support around 167.800. Upon producing a bullish engulfing candle, the price has not moved towards the North as expected. However, if the chart produces another bullish reversal candle right at the support level, the buyers may push the price towards the last swing high. A bullish breakout at the last swing high may generate more bullish momentum and make the pair very bullish.

On the downside, if the price breaches the support, the sellers may find some short opportunities if the price confirms the breakout and produces a bearish reversal pattern. The price may find its support around 166.330.

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

Contact and follow Tareq on Twitter: @tareqfpn

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