CHF/JPY continues to move sideways on its daily time frame, and this short-term reversal pattern suggests another bounce off support could take place.
Or is there still a chance for a break lower?
Check out these inflection points!
CHF/JPY: Daily
CHF/JPY Daily Forex Chart Faster with TradingView
Swiss National Bank (SNB) head Schlegel recently reiterated that negative interest rates and FX intervention remain policy options for the central bank should inflation and franc appreciation go out of control.
On the flip side, Japanese officials continue to watch yen movements closely, so markets are wary of another round of intervention to prevent further JPY weakness.
These factors have dragged CHF/JPY down from the resistance around 203.70 to the bottom near 199.25 in the past month, and it looks like the range could still hold.
CHF/JPY is forming what appears to be a double bottom right on top of the range support, suggesting that a bounce could gain traction once the pair breaks above the neckline around the pivot point (201.31).Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie 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!
If this happens, keep an eye out for a potential rally back to the range resistance close to R1 (203.92). On the other hand, a move below the long-term range bottom could clear the way for a selloff down to the nearby bearish target at S1 (198.52) or even a selloff that’s the same height as the rectangle pattern.
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!
This CHF/JPY setup is stuck between support and resistance on the daily chart, and if range-bound conditions aren’t something you’ve studied closely, it’s worth a refresher. Premium members can read our lesson:
📖 What is a Range-Bound Market?
Reading this helps you understand how to identify a genuine range using tools like ADX and Bollinger Bands, why pairs like CHF/JPY can hold the same boundaries for weeks, and how to judge whether a bounce off support or a break of range is more likely to play out.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where a pair like CHF/JPY sits between support and resistance, but how to read the range mechanics and central bank backdrop behind every bounce or break.
