Today’s setup focuses on Swiss Franc to Japanese Yen (CHF/JPY), presenting a clean and straightforward scenario based on horizontal support and resistance levels. Sometimes, all you need is a solid understanding of these key levels to spot potential trading opportunities.
We have a horizontal resistance clearly marked with black lines. This level previously acted as support on January 13 and flipped into resistance after the breakout on January 16 and 17. The resistance was tested again today, with the price gradually increasing pressure on this level. A breakout above this resistance and a daily close above it would signal a strong buy opportunity.
On the downside, there’s orange horizontal support, which was tested on Thursday and Friday. A break below this support level would indicate a sell signal and could lead to further bearish momentum.
At the moment, the buying pressure is evident, making the bullish scenario slightly more likely. However, both scenarios remain valid and hinge on how the price interacts with these key levels.
Key Takeaways:
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Resistance: The black horizontal line tested today acts as a critical level. A close above it would trigger a buy signal.
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Support: The orange horizontal line, tested multiple times last week, is a crucial level to watch for a bearish breakout.
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Bullish Bias: Buying pressure suggests a higher probability of a bullish breakout, but confirmation is essential.
Let’s see if CHF/JPY buyers can finally take control or if sellers will reassert themselves.