CHFJPY is the biggest mover today

The USDJPY contributed to the gains with a sharp move higher that moved to a topside resistance target in the process (see earlier post and the chart above). The price also tested 2015 highs.

Meanwhile, the USDCHF moved below its 100 hour MA earlier in the North American session, and then a swig area at 0.9316 to 0.9319 (see chart below). The break below each, opened the door for further selling (see earlier post here)

The combination of the USDJPY rising and the USDCHF falling is the recipe for a sharp move in the CHFJPY to the upside (up 1.41%).

Looking the hourly chart of the CHFJPY, the pair also got help from some favorable/bullish technicals.

Looking at the chart below, the lows from Thursday and Friday of last week both bottomed just above the risk defining 200 hour MAs (green lines). The willing buyers were a positive, and the buyers moved the price higher on Friday. The price moved up to retest the high from Wednesday at 133.281 before settling a little lower into the close.

IN trading today, after a brief dip at the open that held above the rising 100 hour MA (blue line), the price first tested the aforementioned highs from Wednesday/Friday at 133.28, and then pushed above that level to the swing high from March 28 at 1.33549 (high of the yellow area in the chart below).

After another brief pause at the swing area (between 133.26 and 133.549), the yellow area was broken, and the price has been trending to the upside since (see yellow area in the chart below).

What now?

Taking a broader look at the weekly chart, the price’s run higher was also able to extend above the June 2015 high at 134.60. The high reached 134.89 and currently trades at 134.80.

A move below 134.60 would be a short term disappointment for buyers on the break back below (may be an exhaustive peak).

That bearish tilt would be increased if the price were to move below 134.26 and then work it’s way toward the swing area breakout on the hourly chart between 133.28 and 133.549.

Ultimately, a break below that area would be required to hurt the buyers, and have them thinking the upside peak has been reached. It would also give sellers more confidence of the same dynamic.