I’m seeing a potential countertrend opportunity on the short-term chart of CHF/JPY.
But could this pair have a shot at extending its rallies past these near-term resistance zones?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Worker unions in Japan call for average of 4.% wage hike – biggest increase since 90s – during spring wage talks
Chinese gov’t work report released opening of the National People’s Congress revealed a lower than expected growth target of 5% for 2023 vs. estimates at 5.5%
ECB head Lagarde: Short-term core inflation is still going to be high, so further rate hikes “very very likely” in order to bring inflation back to 2% target
New Zealand reports 1.3% month-over-month rebound in commodity prices for February, following previous 0.9% dip – ANZ
Australia’s MI inflation gauge shows 0.4% month-over-month increase in prices for February, slower than earlier 0.9% gain
Swiss CPI surprises to the upside with 0.7% month-over-month gain for February versus estimates of a slower 0.5% uptick and previous 0.6% gain
Bitcoin suffers another 6% plunge to $22,000 levels as investors await bankruptcy updates on Silvergate
Price Action News
The lower-yielding Swiss franc had already been raking in some gains towards the end of the previous week, before the rally picked up on the release of the February CPI.
The actual figure showed a 0.7% increase in price levels month-over-month, contrary to expectations of a slower 0.5% uptick.
With that, the Swiss currency popped sharply higher across the board, particularly against the Kiwi, which barely drew support from the pickup in ANZ commodity prices.
Upcoming Potential Catalysts on the Forex Economic Calendar:
Canadian Ivey PMI at 3:00 pm GMT
U.S. factory orders at 3:00 pm GMT
Japanese average cash earnings at 11:30 pm GMT
Australian retail sales at 12:30 am GMT (Mar. 7)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
Technical Chart of the Day: CHF/JPY
Stronger than expected Swiss CPI may have boosted the franc, but how long could these rallies last?
CHF/JPY is already hitting the Standard Pivot Points R1, which happens to coincide with a bunch of other resistance zones.
Not only does it coincide with the top of a rising channel on the short-term time frame, but it’s also right around the previous day high.
Spot those reversal candlesticks right at the channel top, too!
If the ceiling holds, CHF/JPY could retreat to the channel support near the 145.00 handle. A break higher, on the other hand, could spur a move up to R2 (145.88) or even R3 (146.18)
Note that this pair moves an average of 118 pips per day, so it might actually have some room to head higher based on today’s range.
