Hi Traders! CHFJPY short term 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 Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
CHFJPY D1(Daily) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence
On the daily chart, we have a strong resistance zone that has formed and the price which is moving higher has reached this zone, respected it and is bouncing lower from this zone. In addition to this, the price has created a bearish hidden divergence between the first high which has formed at 148.540 and the second high which has formed at 145.294 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also in addition to this, we have a continuing bearish divergence that has formed between the first high that has formed at 145.294 and the second high that has formed at 147.607 based on the MACD indicator, which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short-term bearish view.
CHFJPY H4(4 Hours) Chart Analysis – Bearish Divergence, Uptrend Line Breakout, RSI Indicator
On the H4 chart, we have a bearish divergence that has formed between the first high formed on 15th February 2023 and the second high formed on 10th March 2023 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the price which was moving lower has broken below the most recent uptrend line, which we may consider as another evidence of bearish pressure. Also, we have this uptrend line breakout on the RSI indicator as well, which we may consider as yet another evidence of bearish pressure. So based on all this, until the strong resistance zone (marked in red) shown in the image below holds my short-term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
CHFJPY D1(Daily) Chart Analysis
- Strong Resistance Zone, Bearish Hidden Divergence
CHFJPY H4(4 Hours) Chart Analysis
- Bearish Divergence, Uptrend Line Breakout, RSI Indicator
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 short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Home Trader Club Team
