CHFJPY Weekly – Waiting for Pullback Before Bullish Continuation

CHF/JPY is currently trading at 173.95, having recently rejected the resistance area between 175.00 and 177.00. The rejection aligns with a Trend Strength Index (TSI 10) reading of 0.81, indicating short-term overbought conditions and suggesting that a pullback is likely before any new bullish continuation.

The price is trading above the Ichimoku cloud (Span A at 171.15 and Span B at 171.40), which supports a bullish bias. However, price action over the past months shows a clear sideways consolidation range between 165.00 and 177.00, where bullish momentum has recently weakened (TSI 20 at -0.22).

Given this context, the optimal approach is to wait for a pullback into the support zone between 169.00 and 165.00, where the market has historically found demand. A bullish reaction from this zone could offer a high-quality trend continuation setup toward the upper boundary of the range at 177.00, and potentially toward the range extension at 179.30.

Trade Setup Summary:
Buy Zone: 169.00 – 165.00 (support + range bottom)
Target 1: 177.00 (range resistance)
Target 2: 179.30 (extension above range)
Invalidation: Break below 165.00
Bias: Bullish while above range bottom
TSI: Wait for a reset into neutral or oversold zone for confirmation

The Swiss franc continues to be supported by its safe-haven status, though recent SNB rate cuts have slightly weakened its strength. Meanwhile, the Japanese yen remains fundamentally weak due to the Bank of Japan's persistent ultra-loose monetary policy. This macro backdrop favors CHF strength in the medium term, aligning with the technical setup for a bullish continuation, especially if global risk sentiment remains stable or tilts positive.

Disclaimer: This content is for educational and informational purposes only. It does not represent financial advice or a recommendation to buy or sell any financial instrument. Trading involves risk, and you should only trade with money you can afford to lose.