During the past two months, the Swiss Franc has been trading in a descending channel against the Japanese Yen. The currency pair re-tested an eight-month low of 110.45 on March 23 and subsequently reverse to the upside in a two-weeks ascending channel.
The CHF/JPY exchange rate is gradually moving upwards. However, the pair was stranded between SMAs at the time of this analysis. The 200– hour simple moving average was restricting the bull to continue it upside potential, while the combination of the 55– and 100– hour SMAs and the weekly pivot point was providing support for the pair.
Everything being equal, the pair could rally during the following trading sessions. In the meantime, technical indicators remain neutral.
