Is that a head and shoulders pattern I’m seeing on the 4-hour chart of CHF/JPY?
This is a classic reversal formation, suggesting that the pair could be having trouble sustaining its climb.
Better keep your eyes on this neckline in case a breakdown takes place!
CHF/JPY 4-hour Forex Chart Faster with TradingView
This yen pair has been on a steady uptrend since March 2025. That’s nearly a couple of years already!
Trend exhaustion seems to be showing up, though, as CHF/JPY is completing its reversal pattern as it approaches the neckline support around S1 (198.61).
The Japanese currency has a few factors lined up in its favor, including persistent yen-tervention threats, the Takaichi trade, and BOJ tightening expectations.
Are these enough to spark a reversal?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Swiss franc and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CHF/JPY is still holding on to the Pivot Point (199.80), deciding whether to resume its uptrend to the next resistance levels at R1 (201.07) then R2 (202.27) or to dip to the neckline support and break lower.
Keep your eyes peeled for long red candlesticks reflecting a pickup in bearish pressure, as a break below the floor could set off a drop that’s the same height as the chart formation. If that’s the case, CHF/JPY could set its sights on the bearish targets at S2 (197.33) then S3 (196.14) next.
Just keep in mind that the 100 SMA is above the 200 SMA to reflect bullish vibes for now, though the gap between the moving averages appears to be narrowing to hint at a possible downward crossover.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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