CHF/JPY 1H Chart: Channel Down

CHF/JPY topped out at 107.22 more than 270 bars ago. Since then the currency pair has been mainly declining, reaching in the end the low of 104.06. While the technical indicators on different time-frames are mixed, there is a higher chance of the Swiss Franc appreciating relative the Japanese Yen rather than losing in value, being that the price is in the vicinity of the down-trend support line that is supposed to underpin the pair and initiate a short-squeeze. The surge in turn should last until the upper boundary of the formation at 106.40 is attained, although CHF/JPY has recently failed to do so, turning around ahead of the 200-hour SMA that is currently standing at 105.48.