2026-02-09 03:21:00
This yen pair has been climbing steadily above an ascending trend line on the 4-hour chart, and it looks like another pullback is in order.
Will support keep holding?
Or will we see a major trend reversal soon?
In the battle of lower-yielding currencies, the Swiss franc has been holding on to the upper hand as the currency also benefits from its positive correlation to gold prices.
Meanwhile, the rug appears to have been pulled under the Japanese yen after officials recently downplayed intervention threats.
Does this mean CHF/JPY can sustain its uptrend?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the Swiss franc and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
CHF/JPY busted through the near-term resistance around the 200.00 major psychological mark, suggesting that the uptrend still has legs.
However, the 203.00 handle appears to be holding as a ceiling so far, triggering a potential correction for the pair. Price could retest the former resistance, which is spanned by the 50% to 61.8% Fib levels and is also right around the longer-term trend line that’s been holding since December last year.
Keep your eyes peeled for reversal candlesticks suggesting a bounce from this zone, as a continuation of the climb could spur a test of the swing high or an extension of the rally to R1 (203.90) and beyond.
On the other hand, long red candles closing below the area of interest could point to a reversal, possibly taking CHF/JPY down to the next bearish targets at S2 (197.90) then S3 (196.69).
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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