Hi Traders! CHFJPY forecast and technical analysis post is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! here). Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
CHFJPY D1(Daily) Chart Analysis – Heikin Ashi Candles, Higher Highs, ADX Indicator
On the daily chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving higher has broken above the last high at 120.599 thus creating higher highs based on the MACD indicator which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, there are no signs opposing this bullish view, currently it looks like a pullback is happening and we may expect the price to move higher further after this pullback. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
CHFJPY H1(1 Hour) Chart Analysis – Range, Bullish Divergence, Two Key Support Zones
Looking at the H1 chart, we could see that currently it looks like a flat correction is happening in the form of a range. While measuring the first and second wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 100%(123.581) Fibonacci expansion level of the first wave, 100%(123.540) Fibonacci expansion level of the second wave and the bottom of the range. The second key support zone is formed by the 161.8%(123.135) Fibonacci expansion level of the first wave and 161.8%(123.087) Fibonacci expansion level of the second wave. Also, we have a bullish divergence that has formed between the first low that has formed at 123.722 and the second low that has formed at 123.534 based on the MACD indicator which we may consider as evidence of bullish pressure. Until both the key support zones hold my view remains bullish here. If the price breaks and holds above the top of this range we may then consider it as validation for the bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
CHFJPY D1(Daily) Chart Analysis
- Heikin Ashi Candles, Higher Highs, ADX Indicator
CHFJPY H1(1 Hour) Chart Analysis
- Range, Bullish Divergence, Two Key Support Zones
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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Arvinth Akash
Traders Academy Club Team
