CHF/JPY is almost at its 2024 highs!
Will the bears step in once again? Or can CHF bulls extend the pair’s upswing and bring it to new 2024 highs?
If you missed the AUD/CAD, NZD/JPY, and NZD/USD trade opportunities from earlier this week, then you should check out the 4-hour setup that we’re looking at today!
CHF/JPY 4-hour Forex Chart by TradingView
CHF/JPY is hanging out at the 170.25 area, which is just above the R2 (169.90) Pivot Point line and the 170.00 psychological level for the pair.
How high can CHF/JPY fly before the bears step in? Earlier today, Japanese officials such as Finance Minister Shun’ichi Suzuki and Chief Cabinet Secretary Hayashi already warned that they’re “closely monitoring FX moves with urgency.” Threats of intervention might prevent JPY bears from adding to their positions!
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!
If CHF/JPY breaks below its consolidation and consistently trades below the R2 and 200 SMA support in the 4-hour chart, then we may see CHF/JPY retest lower areas of interest.
The 169.00 psychological handle could draw in CHF/JPY bears but the pair could also reach its 167.10 previous lows if there’s a fundamental catalyst to CHF/JPY’s downswing.
If CHF/JPY ends up extending its upswing, then short-term traders may want to watch the 171.50 previous highs as a potential profit target. And, if CHF/JPY’s upside breakout from its current consolidation is backed by a fundamental catalyst, then CHF/JPY bulls may also price in a potential trip to new 2024 highs for the pair.
What do you think? Can CHF/JPY maintain its upswing? Or is it due for a pullback?
If you’d like to see more in depth fundamental and technical analysis to potentially help you get to high quality strategy ideas and make the processes easier, check out our content at BabyPips Premium to see if it’s right for you!