CHF/JPY Surges Above Key Resistances, Maintains Bullish Momentum

• Current impulsive up move of CHF/JPY has cleared above major resistances of 157.98 & 158.45.
• Short-term momentum remains bullish.
• 159.90 is the key short-term support to watch.

 

The CHF/JPY cross has continued to its relentless rally as it broke above key resistance levels; 157.98 (the high obtained right during the EUR/CHF unpegged shock in January 2015) and 158.45 (Oct 1979 major swing high).

 

Broke above Oct 1979 major swing high of 158.45

✕

 

 

Fig 1: CHF/JPY long-term secular trend as of 27 Jun 2023 (Source: TradingView, click to enlarge chart)

The next key medium-tern resistance zone stands at 163.20/166.70 defined by a cluster of Fibonacci extension levels (see 3-month chart).

The key medium-term support rests at 146.60 defined by the 200-day moving average and the former swing highs of July/October 2022.

 

The short-term uptrend remains intact

✕

 

 

Fig 2: CHF/JPY minor short-term trend as of 27 Jun 2023 (Source: TradingView, click to enlarge chart)

The price actions of CHF/JPY have continued to evolve within a minor ascending channel in place since the 13 June 2023 low of 153.37 and traded above the upward-sloping 5-day moving average (see 1-hour chart).

The hourly RSI has just staged a bullish breakout which indicates that short-term momentum remains positive.

Watch the 159.90 key short-term pivotal support with the next resistances coming in at 162.00 (psychological level) and 163.20 (the intersection between the upper boundaries of both the medium-term and minor ascending channels).

However, a break below 159.90 negates the bullish tone to expose the next minor supports at 158.70 and 157.20.