CHFJPY after providing a high on the intraday time frames at 127.0, strong divergence took over the market which compelled Swiss Franc versus Japanese Yen to break below 125.26. The market provided a bearish corrective low at 124.0 price action with two touch downs at the aforementioned level but seems to be lacking bearish momentum to drive the pair any lower i.e towards 123.36. The two things which are preventing CHFJPY from adapting to a bearish impulsive move are exponential moving average 50 in the daily time frame and 61.8% fibo retracement level. Though the market has broken below the exponential moving average 200 in the daily time frame, while exponential moving average 50 and 200 on the four hour chart have also managed to act as a resistance to the current market price. For a confirm bearish trend, the market would need to break below the previous four-hour low i.e 124.0, that too with an impulsive behaviour. This would open doors towards the 123.22 support line, causing an end to the 5 wave bearish structure on four hour chart and a strong bearish correction of higher degree. From there onwards we might find strong bullish reversals. 

Finding bullish opportunities in the current market requires a bullish closing on four hour chart above 124.22 and 124.60 on the daily time frame. There is a strong order block present at the 123.90 -124.0 level and a bullish reversal from the current market price and the exponential moving average 200 in the daily time frame, could confirm a hawkish maneuver by flying towards 125.25.

CHFJPY Finding Strong Support at EMA200

farhan fazal

Jan 25 2022