Mon, Dec 05, 2022 @ 02:10 GMT
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CHFJPY Stands in Medium-Term Ascending Channel after Sharp Sell-Off

CHFJPY is gaining some ground after the sharp selling interest in the preceding sessions, while it is currently flirting with the 20-day simple moving average (SMA).

The technical oscillators are following the neutral-to-negative reaction in the market in the short-term timeframe. The RSI is ticking down in the positive region, while the MACD is losing momentum below its trigger line in the bullish area as well. Therefore, a reversal to the upside is on the cards, though remaining in the medium-term ascending channel.

If the pair manages to close above the 20-day SMA at 147.17, traders may increase their buy orders all the way to the 150.70 level. The bulls could try to break out of the 151.45 resistance and test the 152.80 barrier at the top of the channel.

However, if the 145.00 support trendline breaks, the four-month view will change to neutral, and the focus will transfer to the 143.50 hurdle. More declines could open the door for the 140.35 and the 137.20 barriers.

In conclusion, selling pressures on CHFJPY are likely to be short-lived as long as the price stays above 143.50.
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