Last week, we looked at CHF/JPY for a potential breakout play as markets reacted to a less hawkish tone from the BOJ.
Since then, the pair pushed to fresh June highs around 178.25 before running into steady selling pressure.
Are we looking at a possible pullback opportunity?
CHF/JPY 4-hour Forex Chart by TradingView
The Swiss franc got a leg up earlier this month thanks to cooling global trade tensions, whispers of a Russia-Ukraine peace deal, and the U.S. dollar losing its shine. That combo pushed CHF/JPY all the way up to the R1 Pivot Point around 178.26.
But the vibe shifted quickly. Geopolitical nerves flared back up as Israel-Iran headlines hit, and positive mid-tier Japanese data gave the yen a little extra juice.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Japanese yen and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CHF/JPY is now hanging out near the 177.00 handle, which lines up with the 176.91 Pivot Point and the 38.2% Fib retracement of June’s rally.
The 176.50 zone also stands out, matching the 50% pullback and that broken ascending triangle resistance on the four-hour chart.
Buyers could step in around current levels and turn 177.00 into a launchpad for another push toward the highs.
If bearish pressure sticks around, though, a dip toward 176.50 might offer a cleaner entry from a more well-watched support area.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
