In previous technical analysis of ours about CHFJPY in D1 time frame we posted our bearish signal on 11th June with our major support pertaining along with our upper trend line keeping CHFJPYin dovish pressure. 

CHFJPY is forming its 5th wave of a lower degree in H4 time frame and almost ready for a short term correction which might pull the pair back to 120.10 and 120.70. Further cannot be expressed because of our major resistance above along with EMA50 and 200.  According to our previous analysis there still might be space for forming last leg, marking lower low which will provide a higher degree of correction further at 118.546. 

BULLISH AND BEARISH OPPORTUNITIES/ POSSIBILITIES :

In current market scenario we are focused on a short term bullish trade with our Stop loss at 118.89 but on the safer side lets make it 118.70 in terms of price action and taking profit would be 120.730. The short term targeted destination is based on over sold conditions of RSI and CCI. This zone is going to be a selling zone again in regards to the last 5th impulsive leg being formed but focus would be on our near term strong resistance at 120.70. A breakout above our monthly pivot i.e 120.552 will mark the continuation of bullish rally.  A breakout below our support at 119.30 will drive the pair towards 118.96 and 118.45 support lines.  The 50% fibb level will provide a strong support and an upthrust to CHFJPY with bullish sentiments - back to its point of breakout i.e 119.57 and above. Focusing on key price action will be our utmost priority so one can cash the opportunity of RSI and MACD correcting its oversold conditions. 

CHFJPY H4

Jul 16 2021