CHF/JPY Up 8 Pips Over Past 4 Hours, 3 Day Down Streak Snapped; Doji and Pin Bar Patterns Appearing on Chart

CHF/JPY 4 Hour Price Update

Updated June 19, 2020 09:20 AM GMT (05:20 AM EST)

CHF/JPY is up 8 pips (0.07%) since the last 4 hour candle (opening the current 4 hour candle near 112.525), marking the 2nd candle in a row an increase has occurred. Compared to its peers in the Forex, CHF/JPY gave its buyers a return that ranked 6th in terms of percentage change since the last 4 hour candle.

CHF/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

A moment of silence, please, for the end of CHF/JPY’s 3 day down streak; price ended the previous day up 3 pips (0.02%) to finish the day at a rate of 112.461. Out of the 40 instruments in the Forex asset class, CHF/JPY ended up ranking 23rd for the day in terms of price change. The price chart of CHF/JPY below illustrates.

CHF/JPY Technical Analysis

Coming into today CHF/JPY is now close to its 20, 50, 100 and 200 day moving averages, which may act as price barrier for the asset. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 44 pips away. Volatility for CHF/JPY has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Interestingly, a trend in the other direction exists on the 30 day timeframe, where price is headed up. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 30 days CHF/JPY’s price has gone up 17 them. Also, candlestick traders! Note we see doji and pin bar patterns appearing here as well.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on CHFJPY, with 3 buy signals on our radar and 9 sell signals. This imputes a buy/sell ratio of 0.33, which is bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Hello traders, Previously I described two possible scenarios for this pair. One of them is confirmed by the bearish engulfing candle after the re-testing of the bottom of the triangle by the last two periods.