CHF/JPY has been on a steady climb these days, but its rally might be cut short as it closes in on a long-term ceiling.
Will we see a bounce or break from here?
Check out these potential inflection points on the 4-hour time frame:
CHF/JPY: 4-hour
CHF/JPY 4-hour Forex Chart Faster with TradingView
Safe-haven flows and SNB jawboning have taken the Swiss franc for a ride over the past month, keeping CHF/JPY stuck inside a range visible on the 4-hour time frame.
Meanwhile, the Japanese yen has also been struggling under shifting BOJ rhetoric and currency intervention threats from officials as well.
Will we see further sideways price action on CHF/JPY?
Risk-off flows appear to be leaning in favor of the franc these days, as hotter inflationary pressures are reducing the need for the Swiss central bank to cut interest rates.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Swiss franc and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
However, the 203.75-204.00 area has proven to be a strong resistance zone for CHF/JPY, so keep an eye out for reversal candlesticks suggesting that sellers are ready to return.
If so, the pair could set its sights back on nearby support levels, possibly around the pivot point (201.17), S1 (199.77) or all the way down to the range bottom around 198.40.
On the other hand, a clean break above the range top could set off a rally to the next upside target at R2 (204.61).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on CHF/JPY’s range resistance. But as any pro will tell you, even the cleanest consolidation setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
