CHF/JPY is reaching a Significant Resistant Level

By Yan Petters – Most of the traders usually prefer to limit themselves to what is known as the major currency pairs, such as EUR/USD, GBP/USD and USD/JPY. However, while doing so, they miss out on many opportunities to see possible profits from a less “safe” currency pair. Here is an example for a possible profit provider pair.

• The chart below is the CHF/JPY 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• The Bollinger Bands are awfully tight, suggesting that a sharp movement is impending.
• There is a very distinct bullish channel formed on the chart, as the current price floats around 88.90.
• Two leading oscillators provide contradicting predictions; the Slow Stochastic suggests that the uptrend is gaining momentum, while the MACD claims that the bullish trend has reached its end.
• To sum up, the CHF/JPY pair is getting closer to the 89.20 level, which is a very strong resistant level. If the pair will eventually manage to breach this level, it is likely to jump up as a result, with potential to reach the 92.00 level. If it fails, the pair could indeed initiate a downtrend.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.