- 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.
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