Market NewsTechnical Analysis

CHF/JPY: Bull Pauses but May Start Running Again

  • The pair has been very bullish in the H4 chart
  • Simple Moving Average 30 has been working as a support
  • The H1 chart gets trapped within a channel
  • The buyers are to wait for a breakout at channel’s resistance
CHF/JPY H4 Chart
CHF/JPY H4 Chart

CHF/JPY Enough Space towards the Upside but Bullish Momentum Fades

The pair has been bullish in the H4 chart for quite a while. It made a bearish breakout at Simple Moving Average 30 and then came back in. The price made a bearish correction and found its support right at SMA 30. By producing a bullish Inside Bar, the price headed towards the North with good momentum. The chart has found its resistance around 165.300. The pair has been in consolidation for the last 24 hours. Since it is Friday, the price may have to deal with the level as weekly resistance next week. However, the H4 chart shows that the price has wide-open space to travel towards the North. Thus, the buyers may keep their eyes in the pair to go long from value areas and push the price towards the upside. On the contrary, the sellers may stay away to go short in the pair as far the H4 chart is concerned.

CHF/JPY H1 Chart
CHF/JPY H1 Chart

The H1 Chart Trades within a Channel

The price made a strong bullish move by finding its support at 161.850. It then made a bearish correction and found its support at 163.00. The level worked as a flipped level of support and pushed the price towards the North with good momentum. It came out as a long bullish wave and found its resistance at 165.300. The price then trades within a channel and seems to have lost its bullish momentum a bit. However, as long as the price trades within that channel, a bullish breakout at the channel’s resistance may attract the buyers to go long again in the pair. A bearish breakout at the channel’s support followed by breakout confirmation may attract intraday sellers to go short in the pair.

Considering both charts, it is very explicit that the pair pauses its run for a while. However, both charts favour the Bull and traders may keep their eyes in the pair to go long whenever opportunity arises.

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

Contact and follow Tareq on Twitter: @tareqfpn

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