CHF/JPY: Contradictory Price Action on Two Significant Charts

• CHF/JPY seems to have found its support at a flipped level on the H4 chart.
• The pair trades above the SMA 30’s support.
• The H1 chart looks bearish upon finding its resistance at 168.000
• Intraday minor charts were bullish in the Tokyo Session.

CHF/JPY – Technical Analysis- H4 chart

The chart shows that the price after being bullish had a rejection at 168.800. The price then made a bearish correction. As expected, it has found its support at 167.215. The price reacted at this level earlier. As of writing, the chart has produced a bullish marubozu candle. Thus, the buyers may keep their eyes on the pair to go long upon having bullish signal confirmation. The price may make a new higher high and find its resistance around 170.000.

On the downside, if the level gets breached by the price, the sellers may wait for a breakout at the SMA 30’s support to go short upon having bearish reversal pattern.

Price Action Analysis- H1 Chart

The level of 168.800 has been working as a strong resistance. The price had multiple rejections at the level. It drove the price towards the South. However, the level of 167.215 played its part and pushed the price towards the North. Upon finding another horizontal resistance, the price has been having a bearish correction. The buyers may wait for the chart to produce a bullish reversal candle to go long in the pair. The buyers may consider the level of 168.800 in their trade management. It means the chart does not offer much space to the price to travel towards the North.

On the contrary, if the price breaches the level of 167.215, the sellers may wait for the breakout confirmation followed by a bearish reversal pattern to go short in the pair. In that case, the price has enough space to travel towards the downside. It may find its next support around 165.900.

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

Contact and follow Tareq on Twitter: @tareqfpn