CHF/JPY 4H Chart: Channel Down

Even within the channel down pattern, the Swiss currency is going up at the moment. The pair is somewhat stuck around the monthly PP at 114.75, which is reinforced by the weekly R1 from above. By eliminating this resistance, CHF/JPY will pave the way for a rally up to the 200-period SMA at 115.79, followed by the weekly R2 and the upper boundary of the channel. From here we foresee another downward leg and a testing of the Feb low at 112.29 in the medium-term. The negative outlook is backed by daily technical indicators, while one-week studies are nearing the point of becoming, on aggregate, short as well. Moreover, the Franc is still overbought, as 72% of all trades are long.