CHF/JPY has been on a strong climb these days, with franc bulls possibly setting their sights on the long-term range resistance.
Will momentum be sustained, or will we see another dip back to support levels?
Check out these inflection points on the 4-hour chart!
CHF/JPY: 4-hour
CHF/JPY 4-hour Forex Chart Faster with TradingView
Support at the bottom of the long-term range around the 198.50 minor psychological mark has been holding up quite well so far this month, even with the rumored yen-tervention moves by the Japanese government.
The Swiss franc has been struggling to keep up its climb, though, as the Swiss National Bank’s threats of negative interest rates and currency intervention are also looming.
Are sellers about to hop back in soon?
Should the pair be unable to make its way past the current resistance zone around the 202.00 major psychological mark, look out for dips to nearby support zones at the pivot point (200.94) then S1 (199.86), or all the way down to the range bottom.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!
On the other hand, sustained upside momentum past the 202.00 handle could clear the way for a move up to R1 (202.88) then the range resistance right in line with R2 (203.96).
The 100 SMA is above the 200 SMA for the time being, though the moving averages have been oscillating to reflect rangebound action.
Just be sure to keep your eyes and ears peeled for additional currency intervention efforts by the Japanese government that could keep yen losses in check!
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 article touches on Japanese intervention jitters as a key force keeping CHF/JPY rallies contained, and if you’re not sure how that works, Premium members can read our lesson:
📖 Currency Intervention: When Central Banks Enter the Market
Reading this helps you understand what currency intervention actually is, how to spot it coming, and why central bank activity can override technical levels and stall a pair’s momentum.
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 key levels are on a chart, but the central bank forces that can make or break them.
