CHF/JPY: Stages are Ready for the Bull, What next?

• CHF/JPY made a significant bullish breakout at the SMA 30 on the H4 chart.
• The last swing low offers enough space for the price to travel towards the North.
• The H1 chart may get choppy.
• Intraday minor charts’ price action has been bullish.

CHF/JPY- Technical Analysis-H4 Chart

The chart shows that the price had a strong bounce at 160.850. Since then it has been heading towards the North. On its way, it made a bullish breakout at the simple moving average 30. As of writing, the pair trades above the SMA 30. Thus, the buyers may be very interested to look for long opportunities. If the price consolidates at the SMA 30’s support, the buyers may go long upon having a bullish reversal candle. The price may find its next resistance around 164.150.

On the downside, if the price breaks the SMA 30, the sellers may wait for the price to consolidate at the breakout level and produce a bearish reversal pattern to go short in the pair. The price may find its support around 160.850.

Price Action Analysis- H1 Chart

The chart shows that the price has been up trending by obeying a trend line. At the last bounce, it produced a Hammer and headed towards the North with a good momentum. However, the price had a rejection at 163.650 and ended up producing a bearish engulfing candle closing right at the trend line’s support. It may play a vital role. A bearish engulfing candle may attract the minor charts’ traders to go short in the pair. However, if the trend line’s support holds the price and produces a bullish reversal pattern, the buyers may push the price towards the North based on the H1 chart. The price may find its next resistance around 164.150.

In case of a bearish breakout, the sellers may wait for the price to produce a bearish reversal candle at the broken resistance (trend line) to short in the pair. The price may find its support around 161.950.

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

Contact and follow Tareq on Twitter: @tareqfpn