CHF/JPY: Bull Gets a Strong Slap amid Its Ground

• CHF/JPY has been bullish but having a strong rejection from a horizontal resistance.
• The simple moving average has been working as support.
• The H1 chart has been obeying a bullish trend line.
• Intraday minor charts have been choppy.

CHF/JPY – Technical Analysis- H4 chart

The chart shows that the price has been bullish upon finding its support around 167.450. On its way, it made a breakout at the simple moving average 30. However, after the breakout the next candle had a strong rejection closing within 169.620. The buyers may keep an eye at the level since the price had a rejection at this level and reacted to it. A breakout above the level may push the price towards the North finding the next resistance around 170.550.

On the downside, if the chart produces a bearish reversal pattern and ends up making a breakout at the SMA 30’s support, the price may head towards the South finding its next support around 166.700.

Price Action Analysis- H1 Chart

The chart shows that the price has been obeying a bullish trend line. At the last bounce, it produced a bullish engulfing candle followed by two consecutive bullish candles. Upon producing a bearish candle, the price moved towards the North in a hurry. It has found its resistance around 170.000 and made a bearish correction. As of writing, it seems to be bullish again. However, the buyers may wait for the chart to produce a bullish reversal signal around the trend line’s support to go long in the pair. The price may find its resistance around 170.000 again.

On the downside, if the price breaches the trend line, the sellers may keep their eyes to go short in the pair upon having breakout confirmation followed by a bearish reversal signal. In that case, it may find its support around 168.150.

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

Contact and follow Tareq on Twitter: @tareqfpn