CHF/JPY: Looks Good for the Bear; May Make the Sellers Wait for a While

• CHF/JPY has found a strong resistance on the H4 chart.
• The pair trades below the simple moving average 30.
• The H1 chart looks choppy.
• Intraday minor charts may get bullish in the London Session.

CHF/JPY- Technical Analysis- H4 Chart

The chart shows that the price found its resistance around 168.100 and gradually heading towards the South. The momentum has not been noteworthy for the sellers. However, the pair trades below the simple moving average 30. Thus, the sellers may be very keen to keep an eye on the pair to look for short opportunities. As of writing, the pair seems to be getting sluggish. If it produces a bearish reversal candle breaching consolidation’s support, the price may head towards the South with good momentum. It may find its support at 165.130.

On the other hand, if the price consolidates and breaks the SMA 30, the buyers may look to go long in the pair. In that case, the price may find its resistance around 168.230.

Price Action Analysis- H1 Chart

The chart shows that the price has been down trending by obeying a bearish trend line. It had multiple rejections at the trend line’s resistance. At the last rejection, the pair produced a bearish engulfing candle. However, it did not make a new higher high. As of writing, the pair trades around 167.700. The chart suggests that the level may hold the price as a level of support and push it towards the trend line’s resistance. The sellers may look to go short again upon having a bearish reversal pattern at the value areas.

However, if the price breaches the trend line, the buyers may keep their eyes on the pair to go long upon having bullish reversal pattern at the trend line’s support.

Another scenario is if the price makes a breakout at the current holding support level and produces a bearish reversal pattern, the sellers may be keen to go short and drive the price towards the downside.

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

Contact and follow Tareq on Twitter: @tareqfpn