CHF/JPY is reaching a Significant Resistant Level
December 30th, 2009 Posted in In-Depth Analysis, Technical Analysis
Most of the traders usually prefer to limit themselves to what is known as the major currency pairs, such as EUR/USD, GBP/USD and USD/JPY. However, while doing so, they miss out on many opportunities to see possible profits from a less “safe” currency pair. Here is an example for a possible profit provider pair.
• The chart below is the CHF/JPY 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• The Bollinger Bands are awfully tight, suggesting that a sharp movement is impending.
• There is a very distinct bullish channel formed on the chart, as the current price floats around 88.90.
• Two leading oscillators provide contradicting predictions; the Slow Stochastic suggests that the uptrend is gaining momentum, while the MACD claims that the bullish trend has reached its end.
• To sum up, the CHF/JPY pair is getting closer to the 89.20 level, which is a very strong resistant level. If the pair will eventually manage to breach this level, it is likely to jump up as a result, with potential to reach the 92.00 level. If it fails, the pair could indeed initiate a downtrend.
