CHF/JPY just bounced off the top of the range visible on its 4-hour time frame and appears to be setting its sights back on the floor.
Or will the mid-range area of interest already hold as support?
Take a look at these potential inflection points!
CHF/JPY: 4-hour
CHF/JPY 4-hour Forex Chart Faster With TradingView
Hawkish Bank of Japan (BOJ) expectations and the Swiss National Bank’s (SNB) openness to negative interest rates combined forces to allow resistance at the 204.00 major psychological mark to hold on CHF/JPY.
Yen-tervention fears also likely served as an additional factor keeping the Japanese currency’s losses in check, while the Swiss central bank has been welcoming to franc weakness.
Can these continue to drag the pair further to the bottom of the range?
CHF/JPY is stalling at the 201.00 major psychological level, seemingly forming a bearish flag pattern that could be pointing to a continuation of the selloff.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!
In that case, the pair could have more room to slide all the way down to the bottom of the range around the 198.50 minor psychological mark and S2 (199.07). Stronger bearish pressure could even spur a break lower and extend the slump to the next downside target at S3 (197.11).
On the other hand, a return in bullish vibes could lift CHF/JPY back up to nearby resistance levels, including the pivot point (202.15) near the moving averages then the top of the range again.
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.
Disclaimer:
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.
This article analyzes CHF/JPY trading between a clear range ceiling and floor, and if you’re not sure how to identify range-bound conditions or which tools help confirm them, Premium members can read our lesson:
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