- CHF/JPY had a bounce at 170.000 and has been on a bullish correction.
- The pair trades around the SMA 30 on the H4 chart.
- The H1 chart looks bullish trades above yesterday’s high.
- Intraday minor charts have been choppy.
CHF/JPY – Technical Analysis- H4 chart
The price had a bounce at 170.000 and produced a bullish engulfing candle. Since then, it has been gradually heading towards the North. The level of 170.000 has been a very pivotal level as far as the recent price action is concerned. Thus, the buyers may be very keen to go long above the simple moving average 30. Nevertheless, the swing high on the H4 chart is not far. The pair may consolidate within the swing high and the SMA 30’s support. A breakout above the swing high may generate enough space and push the price towards the North with good momentum.
On the other hand, if the chart produces a bearish reversal signal at the SMA 30’s resistance, the sellers may come into play and drive it towards 169.000.
Price Action Analysis- H1 Chart
The chart shows that it produced a double bottom and made a breakout at the neckline. As expected, the price then headed towards the North in a hurry. On its way, it made a bullish breakout at 170.600. As of writing, the price is on consolidation. The buyers may wait for the price to make a breach at the consolidation resistance to go long in the pair. Alternatively, if the chart produces a bullish reversal signal at the flipped support, it may continue its bullish move and find its next resistance around 171.400.
For the sellers, it does not look good since the chart trades upon producing a double bottom. Nevertheless, the H4 chart looks good for the sellers. Thus, traders are to be cautious here before making any trading decision.
Written by: Md Tareq Sikder, Senior Analyst Forex Prop News
Contact and follow Tareq on Twitter: @tareqfpn