- CHFJPY climbed to new record highs last week
- But got rejected and has retreated a little since
- Overall trend remains overwhelmingly positive
CHFJPY rose to its highest levels in at least four decades last week, since official records began. The price hit a new record peak of 170.52 and subsequently retreated, but not dramatically. Overall, the long term structure of higher highs and higher lows remains intact, keeping the pair in a clear uptrend.
Weekly oscillators suggest that upside momentum is losing steam, reflecting the latest pullback in the market. The RSI has turned down after it reached its overbought levels near 70, while the MACD has flattened below its red trigger line.
In case buyers take back control and pierce above the record high of 170.52, that would take the price into uncharted territory and turn the focus to round psychological numbers where traders might place their stops, providing resistance to advances. In this sense, the levels to watch would be 175.00 initially, and beyond that, the 180.00 region.
Now should sellers stay in charge, the first obstacle to the downside might be the 164.50 zone, which has acted both as support and resistance in recent months. If violated, the spotlight would then shift to the 160.00 area, which halted the retreat in early October.
Summarizing, the long term outlook remains clearly positive. A decisive break below 160.00 is needed to bring that into doubt, although a trend reversal would require much heavier declines than that.
