CHF/JPY broke below a steep uptrend and now looks ready to stretch a month-long slide.
Thinking of jumping into a safe haven showdown?
Here’s what’s on the radar over on the 4-hour chart:
CHF/JPY 4-hour Forex Chart by TradingView
The Swiss franc has been losing ground to the yen since July, thanks in part to the uncertainty around the U.S.-EU tariff deal putting a damper on demand for European currencies like the franc.
At the same time, Japan’s “non-binding” trade framework with the U.S. has shifted attention back to the Bank of Japan and the chance they might go back to raising interest rates.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Swiss franc and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CHF/JPY has been printing lower highs and lower lows since early July, and it just hit the 182.00 psychological level before finally finding some support.
Right now, we’re watching the 183.00 area as a potential resistance zone. It lines up with the 38.2% Fibonacci retracement of last week’s drop, the 200 SMA, and the mid-channel line of the descending channel on the 4-hour chart.
If we see bearish candlesticks show up around that level and sellers step back in, CHF/JPY could slip back toward the 182.00 lows, maybe even take a run at new monthly lows near the S2 Pivot around 180.60.
That said, we’re not counting the franc out just yet. If buyers take control, we could see a push toward the Pivot Point (183.97) and 184.00 psychological handle before any fresh wave of selling kicks in.
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.
