CHF/JPY: Does the Bull Continue or Give Up Soon?

• CHF/JPY has been heading towards the swing high again.
• The pair has had several rejections at the swing high.
• The H1 chart looks bullish having enough space towards the North.
• Intraday minor charts have been bullish.

CHF/JPY – Technical Analysis- H4 Chart

The chart shows that the price has been heading towards the North upon consolidating at the simple moving average 30’s support. The level of 171.415 has been a very significant level since the price had several rejections there. The buyers may wait for the price to make a breakout at the swing high to go long and push the price towards the North further. However, being a strong resistance, the level is poised to produce a bearish reversal pattern as well. If that happens, the sellers may wait to go short below the SMA 30. In that case, the pair may change its trend and find its next support around 168.800.

Price Action Analysis- H1 Chart

The chart shows that the price upon having multiple bounces around 170.400 produced a bullish engulfing candle. Since then, it has been bullish heading towards the North. The chart shows that it has enough space to continue its move. Thus, the buyers may be interested to go long and push the price towards the upside. Nevertheless, the level of 171.415 has potential to work as a resistance. If it produces a bearish reversal pattern, the sellers may keep their eyes on the pair to go short.

On the other hand, if it makes a bullish breakout, it may continue its move and make a new higher high. In fact, it may generate more bullish momentum and attract more buyers.

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

Contact and follow Tareq on Twitter: @tareqfpn