Swiss Franc versus Japanese Yen after closing above exponential moving average 50 and 200 in the four houly and daily time frame, along with a hawkish maneuver that lifted the pair above 61.8% fibo retracement level - indicated that the pair will be breaking above our major resistance 121.0 price action. In our previous analysis we published neutral sentiments because of expecting a bearish reversal from 121.0 for it has acted as a strong barrier since early June - preventing the market from moving any higher but the sentiments strongly shifted from bearish to bullish and lifted the pair towards 122.09. CHFJPY has found near term support at 121.80 and after breaking above some major resistances, we are expecting the market to reverse all the losses made since June by touching the higher high in daily time frame at 122.80. 

The support found at exponential moving average 50 in the weekly time frame is showing signs of creating a double top pattern on the weekly chart - which might be wave 'b' of higher degree of bearish correction that needs to be proceeded by a bearish wave 'c' that breaks below 118.40 and 117.50 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The relative strength index in the daily and interday frames has entered strong overbought conditions and the market needs to take an exit by adapting to a bearish reversal from the current market price or the higher high 122.80. The bearish reversal can lead the market towards 121.20 resistance turned support before any higher, however, if 122.80 level is broken then we will be eyeing 124.40 as our next targeted desination that lyes in the monthly time frame. The elliot wave pattern on the daily chart is showing a bullish corrective structure with the pair currently in final wave 'c', indicating high probability of getting into a bearish fall as the current hawkish maneuver ends. We will still be waiting for the confirmation before entering into the market keeping our major support zones in regard. 

CHFJPY

Oct 12 2021