CHF/JPY 4h heading to Monthly PivotLooking at the CHF/JPY pair on the 4-hour chart, there are some interesting signals popping up:
Bollinger Bands : The price appears to be bouncing off the lower Bollinger Band. This indicates potential support at that level, suggesting a possible reversal in the short term. Bollinger Bands are volatility bands placed above and below a moving average. The bands widen when volatility increases and narrow when volatility decreases. When the price touches or moves outside of the bands, it's considered significant, potentially signaling overbought or oversold conditions.
MACD (Moving Average Convergence Divergence) : The MACD line has crossed above the signal line. This crossover is often interpreted as a bullish signal, indicating that the momentum of the price action is shifting upward. MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period EMA (Exponential Moving Average) from the 12-period EMA.
Considering these indicators, there's a suggestion that the price might continue to rise. The next notable level to watch out for is around the monthly pivot point at approximately 170.182. Pivot points are significant levels used by traders to determine potential support and resistance areas based on the previous period's high, low, and close prices.
With these signals in mind, it seems there's a bullish bias in the short term for CHF/JPY, with potential for a move towards the monthly pivot point.
