Patterns: CHFJPY, GBPJPY
|CHF/JPY 4H Chart: Tests weekly R2 at 117.49
The Swiss Franc has been trading in a one-month ascending channel against the Japanese Yen. The CHF/JPY exchange rate bounced off the bottom border of the channel on August 20 and had since reached an eight-month high level at the 117.49 area.
The currency pair breached a resistance line formed by the weekly R2 at 117.49 during the morning hours of today's session. Given that the price has tested the resistance level as mentioned earlier, the next target for the rate will be the upper boundary of the one month channel at 118.15.
However, if that resistance line holds, the currency exchange rate could make a brief retracement towards a support cluster formed by the combination of the weekly and the monthly PPs at 116.68.
GBP/JPY 4H Chart: Potential breakout
The British Pound has increased its trading range against the Japanese Yen. This bullish momentum started on August 20 and had since breached the upper boundary of a six-month descending channel at 148.00.
Currently, the exchange rate has tested a resistance level formed by the weekly R2 at 149.49 and also, trading near the upper boundary of a one-month ascending channel and could be set for a breakout.
However, If that resistance region holds, the GBP/JPY currency exchange rate is likely to make a temporary pullback towards a support cluster formed by the weekly and the monthly pivot points near the 147.45 mark.
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