Swiss Franc versus Japanese Yen managed to break above our 61.8% fibo retracement level and 119.40 key price action level but did not have enough bullish momentum to project even higher towards our strong resistance zone 120.90. The hawkish move was limited by the Senkou Span A and Senkou Span B of the ichimoku cloud acting as a resistance near 120.12. On the other hand the exponential moving average 200 in the daily time frame and Senkou Span A of the ichimoku cloud are acting as support near 61.8% fibo level and 119.40 oruce action - prevailing CHFJPY from driving any lower and causing losses to the Swiss Franc. According to the elliot wave pattern, the pair seems to be in bearish temporary correction while on the daily chart its consolidating above the resistance turned support price actions. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

CHFJPY breaking below our key support zone did manage to get the pair towards 50% fibo retracement level and just a bit above 38.2% fibo, but the bullish reversal and current stay above the 119.40 is indicating that CHFJPY might be in the mood for further gains in the last quarter. Also the pair has formed bullish engulfing on the weekly chart which was preceeded by a strong bullish reversal from exponential moving average 50 on the daily chart. As long as the pair stays above the aforementioned levels , we are expecting hawkish projections over the Swiss Franc. On the bearish side we would require an impulsive bearish breakout below the 61.8% and 50% fibo level again which would open the doors for further losses towards 116.80 and exponential moving average 200 on the daily chart. 

CHFJPY

Oct 01 2021

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