Swiss Franc versus Japanese Yen was expected to take 61.8% fibo level as a retest zone after breaking below 119.88 towards 117.56 but CHF currency was strong enough to alter the trend and roll the balls with bullish momentum towards our strong resistance zone and price action 121.0. The hawkish maneuver was supported by exponential moving average 200 in the daily time frame - which prevented CHFJPY from breaking below and facing further losses, while once again managing to trade above the exponential moving average 50 on the daily chart. Currently the market is struggling with the Senkou Span A of the ichimoku cloud near 121.0 major price action - acting as a resistance in the face of further gains and breakouts to the pair. 121.0 and 119.88 is our range bound/ extended consolidation zone - which the pair needs to break above from the current market scenario in order to set 121.75 and 122.40 as its next target. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to the elliot wave pattern on the daily chart, the Swiss Franc versus Japanese Yen is in its wave c of bullish impulsive correction and we are waiting for the move to end, observe the breakouts and fractals for the confirmation of further projection. The relative strength index on the daily chart is trading near 70 while entering into the overbought conditions in the interday time frames, by this we are portraying chances of near by bearish reversal to correct the relative strength index - which might lead the pair towards 120.53. In case the pair broke above 121.0 price action, we can also settle for the pairs projection towards the highest highs on the daily time frame. 

CHFJPY

Oct 10 2021