By: Mike Kulej
During the preceding few months, the CHF-JPY has been one of the least volatile currency pairs. Both the Japanese Yen and the Swiss Franc have been moving in roughly the same direction, meaning the cross rate between them did not change much.
This may be changing now. Few weeks ago, the price broke out above the main trendline, drawn from the high reached before the global financial panic of 2008. This action effectively reversed the major down trend in CHF-JPY.
At first, the advance was slow, but gained momentum last week. In addition, it found support at the 100 SMA on the weekly chart, yet another bullish sign. The weekly range expanded significantly, in the largest weekly move since October. It appears that price will test the next important resistance at 91.60.
Other technical indicators are mixed. While the MACD is firmly above the zero, which supports the bullish trend, the ADX is slow to react. It is rising, but not as fast as it could. However, if we see another week of advance in the CHF-JPY, the ADX will likely jump higher, too, confirming the new long-term uptrend.