CHFJPY Reverses Inside Trading Range
- CHFJPY Opens in a 43 Pip Range
- Range Resistance is Found at 114.96
- Breakouts Signaled Under 114.31
CHFJPY 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
Suggested Reading: Trading Intraday Market Reversals
The CHFJPY started Wednesday’s trading traveling inside of a 43 pip range. Price has already tested both support and resistance values going into today’s U.S. trading session. Range resistance is currently found at the R3 pivot at a price of 114.96; while price support is found at the S3 pivot at a price of 114.53. As price bounces off of support, and the market fails to breakout, traders can continue to look for a price reversal back to levels of resistance.
In the event that prices do breakout, traders can begin to look for bigger shifts in market price. A drop below the S4 pivot at a price of 114.31 would signal a move to a lower low in the direction of the pair’s daily trend. A move above the R4 pivot at 115.18 would signal a break to a higher high, counter to the CHFJPY’s prevailing trend. In either breakout scenario, all range reversal trading should be concluded with day traders opting to place new orders in the direction of the markets new prevailing trend.
Yesterday, traders were looking at the NZDUSD which was also trading between key support and resistance. Price did manage to test the R3 range resistance line, but with price volatility slowing down the NZDUSD failed to move back to range support. Since this point, the pair has continued to range and is currently still trading between marked lines of support and resistance. To learn more about yesterday’s action, check out Wednesday’s FX Reversal article linked below.
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---Written by Walker England, Trading Instructor
To contact Walker, email firstname.lastname@example.org. Follow me on Twitter @WEnglandFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.