CHF/JPY: A Confluence Level May Determine Its Next Direction

• CHF/JPY has been having a bearish correction on the H4 chart.
• The price is approaching at a confluence level.
• The H1 chart looks bearish.
• Intraday minor charts have been bearish.

CHF/JPY – Technical Analysis- H4 chart

The chart shows that the price made a bullish move on the H4 chart earlier breaching the simple moving average 30’s resistance. It continued its move and found its resistance around 168.000. Since then the price has been heading towards the downside. The SMA 30 and a horizontal level at 167.100 may play a significant role to determine its next direction.

A bullish reversal pattern at the confluence level may push the price towards the North and make a new higher high. The pair may find its resistance around 168.300.

On the contrary, if the price breaches that confluence level, the sellers may look to go short in the pair. The price may find its support around 166.000.

Price Action Analysis- H1 Chart

The chart shows that the price has been gradually heading towards the South. As of writing, it has been on consolidation. The level of 167.415 has been working as a support. The sellers may wait for the price to make a breach at the level and confirm the breakout. A bearish reversal signal around the breakout level may drive the price towards 167.000.

On the other hand, a bullish reversal at the level may push the price towards 167.800.

Considering both charts, it seems that 167.000 level is going to play a vital role here. Traders are to keep their close eyes on the price action around the level to find the pair’s next direction. At the moment, buyers and sellers both should wait (H4 traders) since it may not offer entries with lucrative risk-reward.

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

Contact and follow Tareq on Twitter: @tareqfpn