It’s a battle between the safe-havens!
CHF/JPY is stuck in a holding pattern these days, as geopolitical tensions are keeping traders on edge.
Which lower-yielding currency will dominate?
CHF/JPY 4-hour Forex – Chart Faster with TradingView
With the US-Iran conflict not showing any signs of simmering anytime soon, traders are still scrambling to safe-haven lower-yielding currencies like the franc and yen.
However, the Swiss National Bank has recently warned that they are willing to intervene in the FX market if their currency appreciates too sharply.
Meanwhile, Japanese officials appear more welcoming of yen strength, though there is political pressure on the Bank of Japan to refrain from hiking interest rates.
Can CHF/JPY bust out of its triangle pattern next?
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!
The pair has formed higher lows and found resistance near the 204.00 major psychological mark, creating an ascending triangle on its 4-hour time frame.
Another test of the triangle top seems to be in the works, and a bounce could take CHF/JPY back to support around the pivot point (202.60) or the triangle bottom near the 202.00 major psychological level.
Sustained bearish pressure could even drag the pair below the dynamic support around the moving averages and S1 (201.19) onto a test of the next downside targets at S2 (199.01) then S3 (197.60).
Just look out for long green candlesticks confirming a break above the triangle resistance, as a pickup in bullish momentum could lift the pair to the next upside targets at R1 (204.78) then R2 (206.19).
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.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on CHF/JPY’s triangle. But as any pro will tell you, even the cleanest trend-following setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
In “Unknown Market Wizards,” Jack Schwager interviews successful traders to reveal a common truth: their edge isn’t just knowledge or skills—it’s their psychological resilience and rigid risk control. Whether you’re navigating tariff shocks or safe haven flows into the franc, learn how the “wizards” stay clinical when the rest of the market is emotional.
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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.
