CHF/JPY: An Up trending Parallel Channel on the H1 Chart Holds the Key

• CHF/JPY has had its second bounce at the swing low on the H4 chart.
• The pair trades below the simple moving average 30’s resistance.
• The H1 chart trades around a horizontal support looking for its next direction.

CHF/JPY – Technical Analysis- H4 chart

The chart shows that the price had a bounce earlier at 162.200 last week. This week, it had another bounce and made a move towards the North. As of writing, the pair has been on consolidation. The buyers may look to go long upon having breakout at the level of 164.070. However, the simple moving average 30 has been working as resistance. Thus, the next move may not be a long one on the H4 chart. In fact, the sellers may wait for the chart to produce a bearish reversal pattern at the SMA 30’s resistance to go short in the pair to get lucrative risk-reward.

On the contrary, if the price breaches the SMA 30’s resistance, the bear may come into play and push the price towards the North further. The price may find its next resistance around 166.450.

Price Action Analysis- H1 Chart

The chart shows that the price after having a bounce at the last swing low headed towards the North with good momentum. It then gets caught within an up trending parallel channel. The pair trades around the channel’s support as of writing. Intraday minor charts may go long from here upon having bullish reversal signal.

On the contrary, the H1 chart traders may wait for the price to make a breakout either at the support to go short or at the resistance to go long in the pair. In case of a bearish breakout, the price may find its support at 162.200. If it makes a bullish breakout, it may find its next resistance around 165.300.

Written by: Md Tareq Sikder, Senior Analyst Forex Prop News Contact and follow Tareq on Twitter: @tareqfpn