CHF/JPY Analysis: bearish momentum is building as the price attempts to break a key support level

CHF/JPY has been bullish for the last couple of years and the price has made an all-time high at 171.550. However, recently the price broke the bearish trend line on 4-hour time frame and the price is attempting to break the 170.050 support.

The price is likely to break this level soon as long bearish candles have already appeared and the market structure is also turning bearish. Once the price breaks the 171.550 support level an extended bearish trend is likely to prevail.

I am expecting the price will break the support in its next attempt as the price has formed a double top pattern which is an indication of a bearish reversal trend. I would recommend waiting for the price to break below the support and retracing back to the same level before entering for short trades.

Fundamentally, the price of CHF/JPY is likely to remain stable as there are no major news events on the Japanese yen and Swiss franc tomorrow and next week.

However, the market will get volatile when the interest rate decision is announced on the US dollar next week. I would recommend watching this trade while the interest rate decision is being announced.

• CHF/JPY is likely to break the 170.050 support level in its next attempt.
•  The price is likely to drop to the 165.600 level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:2.7.
• The entry and stoploss prices have been placed at secure levels with the least probability of getting hit.
• Good luck!

The post CHF/JPY Analysis: bearish momentum is building as the price attempts to break a key support level appeared first on Invezz