CHF/JPY Up 6 Pips On 4 Hour Chart, Price Base in Formation Over Past 90 Days; Eyes 20 Day Average

CHF/JPY 4 Hour Price Update

Updated June 25, 2020 01:12 PM GMT (09:12 AM EST)

The choppiness in the recent four-hour candle price action of CHF/JPY continues; to start the current 4 hour candle, it came in at a price of 113.039, up 6 pips (0.05%) since the last 4 hour candle. Out of the 37 instruments in the Forex asset class, CHF/JPY ended up ranking 13th for the four-hour candle in terms of price change.

CHF/JPY End of Day Recap

Updated 00:30 GMT (04:30 EST)

The back and forth price flow continues for CHF/JPY, which started today off at 112.878, down 4 pips 0.03% from the previous day. Out of the 40 instruments in the Forex asset class, CHF/JPY ended up ranking 25th for the day in terms of price change. Let’s take a look at price chart of CHF/JPY.

CHF/JPY Technical Analysis

Notably, 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 15.7 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. 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 30 day horizon; over that time period, price has been moving 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. For additional context, note that price has gone down 6 out of the past 10 days. Also, candlestick traders! Note we see pin bar pattern appearing here as well.

The View From Around the Web

Of note is that traders in aggregate have opinions on CHFJPY, with 12 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 2.4, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a trendline technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

CHFJPY is forming a falling wedge (continuation pattern)….A break of the resistive trendline has occurred, AND a retest of the resistive trendline is currently happening, lining up perfectly with the 61.8 Fib level….Bulls can enter long positions now, targeting the strong, daily resistance zone as a first target.