CHFJPY BUY SETUP FALLING WEDGE PATTERN
CHF/JPY has historically exhibited periods of range trading, which is not surprising given the similar underlying fundamental characteristics. A break-out of the range has previously seen a run to new levels before a new range is established.
It’s possible that the recent run higher has paused, and it might be establishing a new range of 131.95 – 136.18, the low and high of the last month. These levels may provide support and resistance respectively.
Further support might lie at the 34-day simple moving average (SMA), currently at 132.55 or a prior low of 130.77 and a pivot point of 129.03. The latter was the August 2015 peak.
On the topside, resistance could be at the previous peaks of 134.62, 135.05 and 135.43.
The short-term 10-day SMA has just crossed below the 21-day SMA, which may signal that near term bearish momentum could unfold.
The 34- and 55-day SMAs are below the price and have positive gradients, suggesting that underlying bullish momentum remains. This clash of momentum signals might be indicative of a range trading environment for now.
It’s possible that the recent run higher has paused, and it might be establishing a new range of 131.95 – 136.18, the low and high of the last month. These levels may provide support and resistance respectively.
Further support might lie at the 34-day simple moving average (SMA), currently at 132.55 or a prior low of 130.77 and a pivot point of 129.03. The latter was the August 2015 peak.
On the topside, resistance could be at the previous peaks of 134.62, 135.05 and 135.43.
The short-term 10-day SMA has just crossed below the 21-day SMA, which may signal that near term bearish momentum could unfold.
The 34- and 55-day SMAs are below the price and have positive gradients, suggesting that underlying bullish momentum remains. This clash of momentum signals might be indicative of a range trading environment for now.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.