CHFJPY made its highest highs in weekly and daily time frames at 122.780 marking an end to its 5 wave impulsive wave structure and went for a fall near 118.80. Traders in accordance to the wave structure were expecting a corrective wave B followed by a deeper correction C but this last week CHFJPY failed to provide any new low or mark an end to correction. Instead the pair is giving a feel of complex corrective structure might be in process with its highs near 120.95 and supports at 119.80, 119.00 and 118.80 i.e low of wave B of correction. Strong bullish candles were formed on Thursday and Friday but the weekly and daily pivots acted as a roof top, preventing the pair from moving any further. The 50EMA which is known for causing the market with reversals is also lying at the top along with the intraday EMAs. 121.0 and 119.30 are the instant major resistance and support inbetween which the market has been consolidating itself.

BEARISH/ BULLISH POSSIBILITIES/ CONDITIONS :

Swiss franc if breaks our resistance at 121.00 and moves above the daily EMA50, then 122.00 will be our next price action to be considered as a target destination, because under the weekly chart, that is where we will be most expecting a continuation of wave C to put an end to the corrective wave structure near 50% fibb level i.e 118.30. The completion of correction can also take place from the current market price because of multiple hindrances in the way like EMA50, 120.80-121.00 price action which might provide a bullish momentum. On the chart, MACD can be seen losing the bears on its side slowly and the energy is being shifted onto the bulls maybe which can cause an act of impulse towards 122.00 price action. Better buying opportunities should be taken from 50%fibb level because it is being strongly supported by EMA200 as well. So until an exit from the side way pennant is made, we are not certain to position trades in current market scenario and will rather wait either for a breakout or a reversal within the side ways extension to trade between the two levels i.e 120.70 and 119.20

CHFJPY Final Corrective Wave Pending

Jul 11 2021

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