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! Now, let’s start our analysis from the highest timeframe which will be the H4 chart here.
CHFJPY H4(4 Hours) Chart Analysis – Key Support Zone, Bullish Divergence, Downtrend Line Breakout, Parabolic Sar
On the H4 chart, the price which was moving lower reached a key support zone formed by the 61.8% (123.810) Fibonacci expansion level of the first wave. The price respected this zone and is currently bouncing higher from it. Also, we have a bullish divergence that has formed between the first low that has formed at 123.767 and the second low that has formed at 123.546 based on the MACD indicator which we may consider as evidence of bullish pressure. The price then moved higher and has broken above the most recent downtrend line, which we may consider as another evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. So based on all this, my view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
CHFJPY H1(1 Hour) Chart Analysis – Bullish Convergence, Stochastic Oscillator
Looking at the H1 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 123.655 and the second low that has formed at 123.546 based on the MACD indicator. The price then moved higher and broke above the last high at 124.101 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. In addition to this, based on the Stochastic Oscillator, we could see that the price is nearing the extreme, if it reaches the extreme we may then consider it as evidence of bullish pressure. Also, currently there are no signs opposing this bullish view. Until the key support zone holds my view remains bullish here and I expect the price to continue higher further after pullbacks.
Technical Analysis & Forecast Summary
CHFJPY H4(4 Hours) Chart Analysis
- Key Support Zone, Bullish Divergence, Downtrend Line Breakout, Parabolic Sar
CHFJPY H1(1 Hour) Chart Analysis
- Bullish Convergence, Stochastic Oscillator
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.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team
