Possible depreciation of CHFJPY

CHFJPY has been trading in a horizontal trend for a week. As a result of today’s upswing, the market has reached the upper limit of this consolidation, where the first supply reaction has already happened. Permanent rejection of this zone could open the way to declines.

The scenario is supported, at least technically, that consolidation is a form of time correction, which is more likely to occur in the direction of the earlier trend. In the short term, therefore, it is worth considering short position on this instrument.