CHFJPY after breaking below 50% fibb retracement level 118.21, our expectations were eyeing on 38.2% fibo level 117.14 but the pair found support at 117.50 - which also carries high liquidity and supply demand in this zone, providing hawkish sentiments to the pair and driving it above our major support turned resistance 109.30 i.e 61.8% fibo level. Analysts at Wells Fargo point out the Swiss National Bank held monetary policy steady, with no indication about moving to a less accommodative monetary policy stance for the foreseeable future. The see that moderate Swiss growth and inflation, in combination with some improvement in global economic and market sentiment over time, should see the franc soften versus the euro. Both Swiss growth and inflation have shown firmer trends in 2021, with both headline and core inflation rising at their fastest pace in more than two years. However, as this week's announcement makes clear, the uptick in inflation in particular is still modest.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

On the technical side, CHFJPY is currently trading below exponential moving average 50 in daily time frame and is struggling hard enough to maintain its hawkish closing above 61.8% of fibo level because a dovish drop and a closing below would call for the continuation of bearish correction towards 38.2% fibo level. We are emphasizing on 118.90 -119.20 as strong support zone and a hawkish closing above the aforementioned price action would generate enough momentum to break out of exponential moving average 50 on the daily chart. On the bearish side, if CHFJPY provided us with a fractal below 118.90 with an impulse, we would be sure enough to target 118.20 and 117.14 as our next destination. 

CHFJPY

Sep 24 2021