CHF/JPY 1H Chart: Channel Down

Franc's inability to pierce through the resistance at 114.71 earlier this month has led to an emergence of a bearish channel on an hourly chart, even though the currency pair has been preserving overall bullish mood since mid-June.

Nevertheless, in the short run CHF/JPY is considered to be poised for gains, since the currency pair is presently fluctuating just above the lower edge of the pattern at 113.40, which is strengthened by the Jun 26 low and daily S2. The upward correction should end at 113.94 and then give way for a yet another bearish wave. As for the SWFX sentiment—it is noticeably bearish, since 74% of positions are short.