CHF/JPY: Bull Halts Early, What’s Next?

• CHF/JPY has been bullish on the h4 chart trading around a resistance.
• The SMA 30 has been working as a support.
• The H1 chart has found its resistance and may get bearish.
• Intraday minor charts have been choppy.

CHF/JPY – Technical Analysis- H4 Chart

The chart shows that the price made a strong bullish move breaching the simple moving average 30’s resistance. It has traded above the level for quite a while. As of writing, the price trades at 171.000. Traders are to wait for the price to make a breach at the level to go long in the pair. A bullish breakout at the level may push the price towards 171.400. Since the level of 171.400 does not offer a long move, so the pair may make a bearish correction on the H4 chart. In that case, the SMA 30’s support may play a vital role to push the price towards the North again.

On the contrary, if the price breaches the SMA 30’s support, the sellers may come into play and drive the price towards the downside.

Price Action Analysis- H1 Chart

The chart shows that the price has found its resistance around 171.000. Being a round numbered resistance, it is supposed to play a significant role. It has already produced a bearish candle and drove the price towards the South. The level of 170.750 seems to be working as a level of support, where the price reacted several times. A bearish breakout at the level may drive the price towards the downside. The price may find its next support around 170.180.

On the upside, if the price breaches the resistance, it may continue its bullish move and find its next resistance around 171.400.

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

Contact and follow Tareq on Twitter: @tareqfpn