CHF/JPY: Bull Dominates on the H1; Bear on the H4

• CHF/JPY has been bearish on the H4 chart.
• The pair may make a bullish correction to find its resistance.
• Intraday price action has been bullish.

CHF/JPY-Technical Analysis-H4 Chart

The chart shows that the pair found its resistance around 166.450 and made a strong bearish move. On its way, it made a breakout at 165.500 and continued its bearish journey. The price had a bounce at 164.000. As of writing, it has been heading towards the North. The sellers may wait for the price to find its resistance and produce a bearish reversal pattern at value areas to go short in the pair. The level of 166.450 may work as a flipped resistance. Thus, the sellers may keep their eyes on the level to see what price action does around that area. Upon having resistance, the pair may find its next support around 163.000.

On the upside, the pair may go towards the North. However, unless it makes a bullish breakout at 155.450, the buyers may not find long opportunities with lucrative risk-reward.

Price Action Analysis-H1 Chart

The H1 chart exhibits a strongly bullish trend. After a rebound, around 164.000 the pair produced a bullish engulfing candle and headed towards the North. The next candle made a breakout at 164.970 and traded above the level for two more candles. Thus, the buyers may wait for the chart to produce a bullish reversal candle to go long in the pair. If that happens, the pair may find its next resistance around 165.400. A breakout above that level may generate good bullish momentum and push the price towards the North further.

The H4 chart remains bearish. However, the H1 chart looks good for the buyers. Thus, H1 buyers may go long with caution. On the other hand, sellers on the H4 chart must wait for the price to produce a bearish reversal pattern with some bearish momentum.

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

Contact and follow Tareq on Twitter: @tareqfpn