News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.02%, while traders in Wall Street are at opposite extremes with 74.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Tt68HR25h
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/dOChzDPvBW
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.26% Oil - US Crude: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FgSiJ4PcT3
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇳🇿NZD: 0.27% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.05% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qhfolQdLUG
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.43% US 500: -0.70% France 40: -1.89% FTSE 100: -2.07% Germany 30: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HjUzIke5gV
  • ZEW economic sentiment soars in May. #zew #euro #eurusd @DailyFX https://t.co/jEIeoeotgq
  • 💶 ZEW Economic Sentiment Index (MAY) Actual: 84 Previous: 66.3 https://www.dailyfx.com/economic-calendar#2021-05-11
  • 🇩🇪 ZEW Current Conditions (MAY) Actual: -40.1 Expected: -41.3 Previous: -48.8 https://www.dailyfx.com/economic-calendar#2021-05-11
  • 🇩🇪 ZEW Economic Sentiment Index (MAY) Actual: 84.4 Expected: 72 Previous: 70.7 https://www.dailyfx.com/economic-calendar#2021-05-11
CHF/JPY Struggles to Break Resistance Around 118.60, What’s Next?

CHF/JPY Struggles to Break Resistance Around 118.60, What’s Next?

Izaac Brook,

CHF/JPY Talking Points:

  • CHF/JPY hit a multi-year high around 118.80 in mid-February.
  • The pair has been struggling to reclaim this level and has continually met support around 118.60 recently.
  • The 118.60 level marked a high in both 2017 and 2018.
Advertisement

CHF/JPY Struggles to Break Resistance Around 118.60, What’s Next?

CHF/JPY hit its highest level since early 2016 in February, rising to briefly trade around the 118.80 level. The pair met resistance around this multi-year high and grinded back lower, falling to support around the 116.00 level.

Another attempt on 118.00 in mid-March met a similar fate, sliding back to the 116.00 level. From this March 23rd low, the pair steadily strengthened through mid-April, rising as high as 118.70 before meeting resistance and turning slightly lower. Over the following week, price action whipsawed between 118.60 and 117.70, with attempts higher quickly rejected.

The pair slipped to a fresh two week low on April 21st, falling to 117.60. While further attempts at 118.60 may be in store for the near future, the longer-term outlook for the pair is looking mixed which lends itself to range trading strategies.

Swiss Franc/Japanese Yen – 2 Hour Time Frame (February – April 2021)

CHF, JPY, CHFJPY, TradingView

Chart created by Izaac Brook, Source: TradingView

Swiss Franc/Japanese Yen – 1 Day Time Frame (2016 – 2021)

CHF/JPY Struggles to Break Resistance Around 118.60, What’s Next?

Chart created by Izaac Brook, Source: TradingView

In a longer-term perspective, the 118.50 level has marked a key high point in the range for the pair established in 2016. The yearly highs in 2017 and 2018 both occurred around the 118.50 level, and were both followed by, on average, a 400 pip drop over the following month.

While CHF/JPY has trended higher since the March 2020 lows around 109.00, there may not be much remaining in the way of further strength. In 2021, the pair has mainly consolidated between the 116.00 and the 118.00 level, with a failed attempt at breaking to new multi-year highs in February. With another attempt at the 118.50 level rejected in mid-April, further downside may be lurking.

--- written by Izaac Brook, DailyFX Research Intern

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES