CHFJPY if analyzed under daily and weekly time frame, there are very prominent traces of 5 wave bullish impulse being completed at 122.70 in June. We were expecting a further decline in the pair to provide us with completion of a higher degree of correction but it seems as if that isnt going to happen anytime soon. The current scenario is pointing more towards a complex corrective structure with a sidewave channel, also known as ranging/ range bound. Our focus was more towards the upper trend line being broken under H4 time frame so one can execute their bullish positions. Market has rejected this area i.e 118.80- 118.60 , thrice to provide us with a breakout from the support zone, instead more demand is being generated within this consolidation. 61.8% fibb is playing a strong role in witholding the aforementioned region from being breached, instead calling for more denials. 

BULLISH AND BEARISH CONDITIONS / POSSIBILITIES :

We are bullish on CHFJPY after it has taken an exit from our upper trend line, breaking it at 119.70, driving itself above EMA50. 61.8%fibb also supporting the hawkish tone with RSI ready to re-adjust itself by reverting the oversold conditions. 120.63 will be our targeted destination or take profit area because we are not willing to risk any further capital above that point for now, as we said, market is in a complex corrective structure and a major breakout at either end is important to understand the future formation of the market. We advice traders not to risk any further positions which are not valid in accordance to our aforementioned forecast. Further market sentiments will be updated soon, so trade within the range bound. 

CHFJPY H4

Jul 21 2021

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