• 
• See all for FOREXYARD
• View Print Version

• Start Trading FOREX Today
• Dollar Anticipates Release of US Advance GDP
• EXCLUSIVE MARKET ANALYZER REPORTS

The Swiss franc has been steadily losing ground to the Japanese yen for the last several weeks. Since October 7th, the CHF/JPY has tumbled some 350 pips. It now appears that the bearish trend may be coming to an end. As we will illustrate through a number of technical indicators, the franc may be set to reverse its current direction over the next few days.

We will be looking at the daily chart for the CHF/JPY pair, provided by Forexyard. The technical indicators being used are the Williams Percent Range, Relative Strength Index (RSI) and Stochastic Slow .

1. The Williams Percent Range is currently right around the -90 level. Typically, anything below -80 is considered to be in oversold territory. Traders can take this as a clear signal that upward momentum is imminent.

2. The RSI is currently well below the support line, in yet another indication that the pair is in the oversold region. Traders will want to pay attention to this signal. When it starts pointing upward, the pair is likely to see bullish momentum.

3. In what may be the clearest sign that the pair will enter into an upward trend, the Stochastic Slow has formed a bullish cross below the support line. Going long on the CHF may turn out to be a profitable choice once the upward momentum begins.

Related Forex and Currencies Articles

• 
  Crude falls as gasoline supply data disappoints, Bernanke comments weigh
  5/22/2013 11:24 AM
• 
  Gold falls as Bernanke says policy stays loose, but under review
  5/22/2013 09:25 AM
• 
  Natural gas falls as weather models call for cooler weather
  5/22/2013 09:25 AM