CHFJPY Chart Technical Outlook tests November’s high, offering value prices for bears
CHF/JPY completed a five-wave upward structure at 170.50 and retreated. The bullish momentum has faded while prices are testing November’s high. The pair is overbought and showing a bearish divergence in intraday charts.
The upward move is due to JPY weakness rather than CHF strength. The latter is mildly weak this month after the strong performance in December. I expect more losses in CHF, especially when risk appetite is back among investors.
I expect a downside price action. If prices spike higher, a fakeout scenario could be in play.
Resistances: 170.50, 171.70
Supports: 168.70, 167.25
