You are here: Home > articles > Forex > Technical Analysis – CHFJPY confined to tight range as positive momentum wanes
Technical Analysis – CHFJPY confined to tight range as positive momentum wanes
September 19, 2023 3:26 pmVideo
Latest News
- Technical Analysis – WTI oil futures exit sideways move to the downside April 18, 2024
- Market Comment – US dollar on the back foot as nervousness lingers in equity markets April 18, 2024
- Hot forecast for EUR/USD on April 18, 2024 April 18, 2024
- EUR/USD and GBP/USD: Technical analysis on April 18 April 18, 2024
- Trading plan for GBP/USD on April 18. Simple tips for beginners April 18, 2024
- Trading plan for EUR/USD on April 18. Simple tips for beginners April 18, 2024
- The Fed and global instability: a double blow to American markets April 18, 2024
- Forecast for EUR/USD on April 18, 2024 April 18, 2024
- Forecast for GBP/USD on April 18, 2024 April 18, 2024
- Forecast for AUD/USD on April 18, 2024 April 18, 2024
- Outlook for GBP/USD on April 18. Pound was not impressed by the inflation data April 18, 2024
- Outlook for EUR/USD on April 18. Euro has fallen into a new flat April 18, 2024
- GBP/USD. Correction or trend reversal? April 18, 2024
- The FOMC will not lower rates in 2024 April 18, 2024
- Powell made a bold point, and Bailey did not report anything important April 18, 2024
- Will the euro take a risk? April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 17-19, 2024: sell below $2,400 (21 SMA – double top) April 17, 2024
- Technical Analysis – GBPCAD hits a wall but bulls not ready to give up April 17, 2024
- Trading Signals for Ethereum (ETH/USD) for April 17-19, 2024: sell below $3,125 (21 SMA – 2/8 Murray) April 17, 2024
- Analysis for the EUR/USD pair on April 17th. Jerome Powell didn’t help the dollar much April 17, 2024
CHFJPY consolidates after reaching all-time high
Short-term bias looks neutral
But downside risk if 50-day SMA doesn’t provide support
CHFJPY has been drifting somewhat lower during September as the year-to-date uptrend lost its steam after reaching an all-time high of 166.57 on August 30. The short-term picture is neutral as the RSI has flatlined just below the 50-mark and the MACD is close to turning zero below its red signal line.
The price action has been stuck in a very narrow range over the past week and is being closed in by the 20-day simple moving average (SMA) to the north and the 50-day SMA to the south. A bearish breakout seems slightly more probable at this stage given the steady decline in positive momentum, potentially creating a battleground in the 164.00 region where the 50-day SMA resides.
A break below the 164.00 floor would take the price inside the Ichimoku cloud, switching the near-time bias to bearish and the medium-term outlook to neutral. Steeper losses would draw attention to the 160.00 handle just above the 100-day SMA and the May top of 155.53.
However, if the bulls fight back and succeed in pushing the price above the 20-day SMA in the 165.20 area, the pair could attempt to surpass its all-time peak of 166.57, resuming its journey into uncharted territory. The 168.00 and 170.00 levels would then become the obvious targets before the 261.8% Fibonacci extension of the September 2022-January 2023 downleg at 174.05 comes into scope.
In brief, CHFJPY could remain in a neutral phase for a while longer, but should it drop below the 50-day SMA, the longer-term bullish structure would start to look a bit shaky.
Related Posts: