CHF/JPY found support around the 188.00 handle again and appears to be setting its sights higher.
Is a reversal due for this pair soon? Or will sellers return as yen-tervention chatter picks up?
Better keep tabs on these near-term inflection points.
CHF/JPY: 4-hour
CHF/JPY 4-hour Forex Chart Faster with TradingView
Stronger than expected Swiss retail sales data appears to have given the franc a bit of a lift this week, though inflation came in flat for September and unlikely to pressure the SNB to hike anytime soon.
On the flip side, the Bank of Japan recently hiked interest rates and appears open to further tightening, while Ministry of Finance officials have been cautioning against a weaker yen.
Will CHF/JPY stay on its bearish path?
CHF/JPY just bounced off S1 (188.64) and appears to have enough bullish energy for a climb to the next resistance at the pivot point (190.56) then R1 (191.76).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!
Now the latter is close to the 192.00 major psychological resistance and potential double bottom neckline. Should the pair keep rallying past this zone, a reversal from the earlier downtrend could pick up steam and keep lifting price up to R2 (193.68) and beyond.
On the other hand, resistance holding near the pivot point or R1 could send CHF/JPY back down to its recent lows near S1 or to the next downside target at S2 (187.44). The 100 SMA is still below the 200 SMA to suggest sellers have the upper hand, and the gap between the moving averages appears to be widening.
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.
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.
CHF/JPY’s bounce off S1 has traders asking whether the downtrend is finally reversing or just pausing for a pullback, and telling those two apart in real time is trickier than it looks. Premium members can read our lesson:
📖 How to Identify Reversals and Retracements
Reading this helps you understand how to tell a temporary retracement from a genuine trend reversal, how pivot points, Fibonacci levels, and trend lines can signal which one is playing out, and why a break above levels like R1 and the 192.00 neckline matters before calling a trend change.
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 the pivot levels sit, but whether a bounce like this one is a pause in the trend or the start of a real turn.
