Technical Analysis – CHFJPY gears up for another test of record highs
CHFJPY rally stalls after hitting record levels back in August
But pair recovered last week, and remains in a clear uptrend
If buyers push to new records, the focus would turn to 170 region
CHFJPY enjoyed a massive surge this year, cruising to new all-time highs. This rally stalled in September and prices corrected lower, but buyers stepped back in last week, boosting the pair to bring it just 1% away from those record highs. Overall, CHFJPY remains in a clear uptrend, something reflected in the upward slope of the simple moving averages (SMAs) on a weekly timeframe. Momentum oscillators are currently flashing mixed signals. The RSI has turned higher towards its overbought region as the pair recovered lately, but the weekly MACD continues to drop below its red trigger line. If buyers manage to pierce above the all-time high of 166.55, taking the market into uncharted territory, the focus could then turn towards round psychological numbers that might act as obstacles to any further advances. In this sense, the 170.00 region could act as the first line of defense. Now in case sellers take back control, an initial barrier on the downside would probably be the recent low of 160.00. Falling below that, the next area to watch is around 151.40. The 50-week SMA is just above at 152.35 and could be considered part of the same area. Summarizing, the period of consolidation in CHFJPY seems to be over and the bulls might take another shot at record highs.
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