CHF/JPY Struggles to Break Resistance Round 118.60, What’s Subsequent?

CHF/JPY Speaking Factors:

• CHF/JPY hit a multi-year excessive round 118.80 in mid-February.
• The pair has been struggling to reclaim this degree and has regularly met assist round 118.60 not too long ago.
• The 118.60 degree marked a excessive in each 2017 and 2018.

CHF/JPY Struggles to Break Resistance Round 118.60, What’s Subsequent?

CHF/JPY hit its highest degree since early 2016 in February, rising to briefly commerce across the 118.80 degree. The pair met resistance round this multi-year excessive and grinded again decrease, falling to assist across the 116.00 degree.

One other try on 118.00 in mid-March met an identical destiny, sliding again to the 116.00 degree. From this March 23rd low, the pair steadily strengthened by way of mid-April, rising as excessive as 118.70 earlier than assembly resistance and turning barely decrease. Over the next week, worth motion whipsawed between 118.60 and 117.70, with makes an attempt greater rapidly rejected.

The pair slipped to a contemporary two week low on April 21st, falling to 117.60. Whereas additional makes an attempt at 118.60 could also be in retailer for the close to future, the longer-term outlook for the pair is wanting blended which lends itself to vary buying and selling methods.

Swiss Franc/Japanese Yen – 2 Hour Time Body (February – April 2021)

Chart created by Izaac Brook, Supply: TradingView

Really helpful by Izaac Brook

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Swiss Franc/Japanese Yen – 1 Day Time Body (2016 – 2021)

Chart created by Izaac Brook, Supply: TradingView

In a longer-term perspective, the 118.50 degree has marked a key excessive level within the vary for the pair established in 2016. The yearly highs in 2017 and 2018 each occurred across the 118.50 degree, and had been each adopted by, on common, a 400 pip drop over the next month.

Whereas CHF/JPY has trended greater because the March 2020 lows round 109.00, there is probably not a lot remaining in the way in which of additional power. In 2021, the pair has primarily consolidated between the 116.00 and the 118.00 degree, with a failed try at breaking to new multi-year highs in February. With one other try on the 118.50 degree rejected in mid-April, additional draw back could also be lurking.

— written by Izaac Brook, DailyFX Analysis Intern