In the weekly timeframe, a trendline originating from March 19, 2023, indicates an upward trend for CHFJPY currency pairs. On November 10, 2023, CHFJPY reached its peak price at 170.559, serving as the current resistance level. Following a price pullback, the trendline rejected the price at 162.100
Weekly CHFJPY chart
Following the rejection at 162.100, the price sustained its upward movement and encountered rejection again at the highest price of 170.559 in the daily timeframe. This rejection solidified 170.559 as the resistance and 162.100 as the support in the daily timeframe.
If the resistance rejection holds, there is a considerable likelihood of the price declining further towards the support, indicating a potential takeover by bears in the CHFJPY market. Conversely, if the resistance rejection doesn’t hold, and the price breaks the resistance, there is a high probability of bulls dominating the CHFJPY market.
Daily CHFJPY chart
Analyzing the 4-hour timeframe, the price faced rejection twice at 166.708 and the current rejection at 169.755, both instances being defined by a trendline drawn from the price at 162.100. If the ongoing rejection from the uptrend trendline holds, it increases the likelihood of the uptrend continuing. However, if the trendline is breached, the bears have a substantial chance of taking control of the CHFJPY market.
4HR CHFJPY chart
Conclusion
In summary, the CHFJPY market exhibits an interesting interplay of key levels and trendlines across different timeframes. The resistance established at 170.559 and the support at 162.100 in the daily timeframe provide critical reference points for traders. The potential scenarios of bears taking control if the resistance rejection holds or bulls dominating if the resistance is breached add an element of anticipation and strategic decision-making for traders.
The 4-hour timeframe introduces additional nuances, with rejection points at 166.708 and 169.755. The current rejection, if sustained, signals a continuation of the uptrend. However, the possibility of the trendline being broken opens up the possibility of bears asserting dominance in the CHFJPY market.
As a trader navigating this market, careful observation of these trendlines, support, and resistance levels is paramount. The dynamic nature of the Forex market suggests that staying attuned to these price movements and trend developments is crucial for making informed trading decisions. Whether it’s the persistence of the uptrend or a potential shift in market sentiment, traders must remain vigilant and adapt their strategies accordingly to maximize opportunities in the ever-changing landscape of CHFJPY trading.
