The 170.25 area, which is slightly above both the 170.00 psychological barrier for the pair and the R2 (169.90) Pivot Point line, is where CHF/JPY is currently holding out.
How far can the CHF/JPY pair go before the bears intervene? Japanese officials, including Chief Cabinet Secretary Hayashi and Finance Minister Shun'ichi Suzuki, issued a warning earlier today stating that they are "closely monitoring FX moves with urgency." JPY bears can be discouraged from expanding their positions by threats of intervention!
We can see CHF/JPY retest lower areas of interest if it breaks below its consolidation and regularly trades below the R2 and 200 SMA support in the 4-hour chart.
The psychological level of 169.00 may attract bears in CHF/JPY, but if there is a fundamental catalyst to the downswing, the pair may potentially approach its prior lows of 167.10.
The previous high of 171.50 may be of interest to short-term traders as a possible profit goal if CHF/JPY manages to continue its upward trend. Additionally, bulls in CHF/JPY may price in a possible move to fresh 2024 highs for the pair if an upside breakout from the current consolidation is supported by a fundamental catalyst.
