Market NewsTechnical Analysis

CHF/JPY: Double Top Followed by Neckline Breakout, What is Next?

  • The pair produced a Double Top and looks bearish
  • The pair trades below Simple Moving Average 30
  • A big drop may occur next week on the H4 chart
  • The H1 chart looks bearish
CHF/JPY H4 Chart
CHF/JPY H4 Chart

CHF/JPY The Bear is on Its Way on the H4 Chart

The pair made a good bullish move on the H4 chart earlier. It had a rejection at 166.350 and made a bearish correction. The price headed towards the resistance again and made a strong bearish move upon having its second rejection. On its way, the pair made a bearish breakout at Simple Moving Average 30. The chart suggests that sellers are going to keep their eyes on the pair to go short from value areas. The H4 chart shows that the price has enough space to travel towards the South. This would be another reason for more sellers to go short in the pair and drive the price towards the downside with good momentum.

On the upside, the pair may not get bullish again until it makes a bullish breakout at 166.350.

CHF/JPY H1 Chart
CHF/JPY H1 Chart

The H1 Chart Gets Bearish after Long Consolidation

The H1 chart shows that the price consolidated around 166.350 for quite a while. The level has been a strong level of resistance on the H4 chart as well. Thus, traders seemed to be very indecisive about which direction to go with. It consolidated within a horizontal channel and then made a bearish breakout at the channel’s support. The price has been bearish since then. As of writing, it is in consolidation as well within 165.300-165.800. A bearish breakout below today’s lower low may drive the price towards the South further. The price may find its next support around 163.900.

On the contrary, if the price makes a bullish breakout it may extend its bullish correction up to 165.750.

The H4 chart favors the Bear. The sellers are going to look for the price to produce bearish momentum from the value area to go short. The H1 chart looks bearish as well. It may make a bullish correction though. Considering both charts, it seems that the pair is going to remain bearish for some days.

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

Contact and follow Tareq on Twitter: @tareqfpn

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Related Articles

Asian Stock Plunge as Nikkei Leads with 3% Drop

Asian markets fell sharply, led by Japan's Nikkei, which dropped 3.14%. U.S....

Asia-Pacific Markets Dip on Tech Earnings and Economic Data

Asian markets fell as U.S. tech earnings disappointed. The Nikkei dropped 1.27%,...

Asian Stock Diverge as Wall Street Sees Strong Rebound

Asia-Pacific markets were mixed as Wall Street rebounded. Taiwan's Taiex surged 2.4%,...

Dollar Steady; Gold and Oil Prices Face Challenges: Market Focus

Quiet start to the week with no major news. DXY steadying around...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Asian Stock Plummet as Nikkei Leads with 3% Drop
Market News

Asian Stock Plunge as Nikkei Leads with 3% Drop

Asian markets fell sharply, led by Japan's Nikkei, which dropped 3.14%. U.S. tech stocks also suffered significant declines.

Asia-Pacific Markets Dip on Tech Earnings and Economic Data
Market News

Asia-Pacific Markets Dip on Tech Earnings and Economic Data

Asian markets fell as U.S. tech earnings disappointed. The Nikkei dropped 1.27%, Hang Seng down 0.83%, and EV stocks fell.

Copyright © 2023 Forex Prop News. All Rights Reserved.