Conclusion for today’s CHFJPY Analysis:
Price breaking out above upper boundary of wedge, and also closing above ~109.782 implies more bullish upside for the CHFJPY.
The CHFJPY chart presented today is the 4 hour time frame with analysis provided to inspect current chart patterns that are crucial to future price development.
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The peak in price on March 03, 2019 ended the bullish price swing from the January 02, 2019 price low of ~106.207. The CHFJPY with respect to the 4 hour time frame remained in a sideways or ranging environment ever since March peak with a rising wedge indicating the later part of the trend phase.
An alternative chart pattern to describe the latter part of price movement in the range would also be an ascending triangle. The rising wedge ideally is bearish, while the conventional implication of the ascending triangle is bullish. It is however important to understand the use of patterns and also when non-confirmation can be anticipated.
The downtrend on the 4 hour timeframe from the April 12, 2019 candle peak at ~111.970 to current date is highlighted using a bearish channel. Use of the channel is ideal upon confirmation for profit targets upon continuation of the current downtrend.
Lastly, the use of a falling diagonal (ideally bullish) is also marked on the chart with horizontal price levels indicated that are important to take note of.
A close above the upper boundary of the wedge and 109.782 increases the chance of sustaining bullish momentum in the CHFJPY. Oppositely, a break below the lower boundary of the wedge and below 109.188 strengthens the current bearish trend.
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