Swiss Franc versus Japanese Yen, after conquering 119.0 price action - has broken above multiple monthly resistances; 122.40 was amongst the most strongest of resistance levels which hadnt been broken since 2016 and was last seen in Dec 2015 with a dovish stance that ended near 101.86. After 6 years CHFJPY managed to linger around 124.55 - that landed the pair in overbought conditions on relative strength index in daily and interday time frames. A highest high has been made on the daily and weekly chart with 126.50 as CHFJPY next target on the monthly chart, but before rallying towards yearly highs, the pair needs to recover from overbought conditions and correct its relative strength index. The bearish correction might lead the market towards 122.75 as its first support that might provide Swiss Franc versus Japanese Yen with some grounds to settle before rallying any higher. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

From the perspective of elliot wave pattern in the daily time frame, we can expect the market to be either in  in the fourth bearish corrective wave and an expected 5th bullish wave is to be awaited that might lead the market towards 126.36. Also on the weekly chart we can expect an awaited final 5th bullish wave that might lead the market towards 128.45. In the aforementioned bullish scenarios, CHFJPY needs to stay above  122.80, however, a breakout below would drive the market towards exponential moving average 50 in the daily time frame i.e 121.0 price action. On the bearish side, CHFJPY needs to break below 61.8% and 50% fibo retracement level i.e 119.28 and 116.21 respectively in order to enter into a dovish trend. 

CHFJPY Struggling To Recover From Overbought Zone

Oct 25 2021