CHFJPY has reached our targeted destination according to the analysis published on 21st July and is flirting near our strong weekly and monthly resistance - with more chances of having its side wave extension being completed. Failing to break out of our resistance at 121.0, we will be considering this level as a good oppotunity for going short on Swiss Franc versus Japanese Yen. CHFJPY also managed to keep up with a bullish stance by moving ahead of our intraday exponential moving averages towards its daily final highs. As we are aware that the pair had been a part of the corrective structure since its breakout in June and has made more of a complex corrective structure, providing retail traders with a range bound situation between 121.0 acting as a strong resistance and 119.25 as our major price action support.

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

Swiss Franc versus Japanese Yen is expected to provide us with bearish sentiments, though the relative strength index is trading above 50 near 59.0 level in daily and so does MACD indicates of gaining some bullish momentum. But the wave trading and our major price action resistance is calling for going short on CHFJPY till our targeted destination at 119.15. The pair under monthly chart is struggling against 50% fibb retracement level if drawn from 139.0 - 102.0 but when we come down to daily and weekly chart, the pair has taken a bullish retrace from 61.8% fibb level. This suggests us that there are major technical barriers in the way of CHFJPY moving any higher and will have a dovish move towards our daily exponential moving average 50 and 100. Worst case scenario if CHFJPY provided us with a bullish breakout above our strong resistance, than it will be taken as continuation of our bullish rally but for that to happen we need confirmation above some major price actions, i.e 121.20.

CHFJPY D1

Jul 30 2021