Technical Analysis – CHFJPY pulls back from record highs
CHFJPY has lost some ground over the last month
Yet, overall picture remains overwhelmingly positive
Decisive break below 160 level needed to change that
CHFJPY suffered a minor retreat in recent weeks, after hitting a record high back in November. That said, the structure of higher highs and higher lows remains in force, which suggests that the market remains in a broader uptrend. Momentum oscillators are near their neutral levels, providing few clues about what comes next. The RSI is around its 50 level, and although the MACD is still negative, it is currently trying to surpass its red trigger line. In case buyers take back the wheel, their first test will take place around 167.30, a region that also encompasses the 50-day simple moving average (SMA). If they slice above it, that could open the way towards the record high of 170.52. Another move higher from there would bring the market into uncharted territory, turning the focus to round psychological numbers such as 175.00 as potential resistance areas. On the flipside, a selloff could see the pair drop towards the 162.00 territory, which halted the declines twice this month. If sellers are powerful enough to drive the pair lower, an even bigger battle could take place near the 160.00 area, which is where the 200-day SMA is located as well. In a nutshell, despite the latest retreat, the broader trend remains resolutely positive. A move below 160.00 is needed to change that.
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