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CHFJPY remains above 140.00

Market Analysis


A week ago , I wrote: ” The NZDJPY despite the pickup seen up to 79.90 due to geopolitics this week,  seems that has turned again lower and it is ready to continue its downtrend channel seen since  July 17. The NZDJPY is traded for a second consecutive day below the 200-Day EMA, while it is also below 20-Week and 50-Week MA for the last two weeks. However an important key indicator for a trend is the Bollinger bands pattern and the 20-Day MA, in which the pair did not manage to break upwards and therefore it is still moving on the lower Bollinger bands pattern.Therefore a SHORT Daily position was taken, which was triggered by the failure on breaking up the 200-Day EMA and also by the Crossing confirmed yesterday, with 20-Day SMA below 200-Day SMA. The entry was taken at 78.92, with Targets at 78.60  and 78.20 based on daily ATR(14). ”  This position hit yesterday T2, with Net Gain at +72 pips.

Today, another yen cross caught my attention. In the 4-hour chart, CHFJPY, broke earlier the 20-period, while candle closed above the 200-period SMA. The RSI IS at neutral , parabolic SAR turned positive since yesterday while it is very interesting that for the last 3 Days, pair seems to be strongly supported by 200-DAY  SMA, despite the weakness observed last week. The ebb and flow of geopolitical tensions this has been generating some volatility. SNB boss, Jordan, signalled in an interview published over the weekend that the central bank remains fully committed to its ultra-accommodative monetary policy settings, saying that he and his colleagues did not know if recent franc weakness, which is desirable from their perspective, would sustain.

Therefore two intra-day in 1hour and 4-hour timeframe were taken. The entry was at 114.30, i.e. after the confirmation of the 20 and 200 period SMA break. Targets on H1 and H4 were set at  114.50 and 114.70 respectively. Support levels were set at 114.15 (20-period MA in the hourly chart), and at 114.00 for Target 2.


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Andria Pichidi

Market Analyst


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