- CHF/JPY has been heading towards the downside on the H4 chart.
- The simple moving average 30 has been working as a support.
- The H1 chart is traded within a horizontal range.
- Intraday price action has been choppy, yet to find a solid direction.
CHF/JPY – Technical Analysis- H4 chart
The chart shows that the price has been heading towards the South with good momentum. However, the sellers may consider that the simple moving average 30’s support is not far away. Thus, the pair may halt its bearish move before finding its route. A bearish breakout at the SMA 30’s support may create more momentum and drive the price towards the downside. The pair may find tis support around 168.150 in that case.
On the contrary, the buyers are going to eagerly wait for the chart to produce a bullish reversal pattern at the SMA 30’s support to look for long opportunities. A bullish reversal at that area may push the price towards the last swing high at 170.450.
Price Action Analysis- H1 Chart
The chart shows that after being bearish, the pair has been traded around a horizontal support. It had multiple bounces, so the sellers are going to count it as a significant support. At the upside, it had its last rejection at 169.600. The level may work as a resistance. Considering recent price action, it seems that the pair may trade within this horizontal channel. Until, it makes a breakout either at the support or at the resistance of that channel, traders are to be patient to make a trading decision based on the H1 chart.
A bearish breakout may drive the price towards 168.700. On the contrary, if the price makes a bullish breakout, it may head towards the North with good momentum and find its resistance around 170.000.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn