CHF/JPY 4H Chart: Channel Down

CHF/JPY is testing the northern boundary of the bearish pattern now, but bulls are unlikely to succeed in penetrating this important resistance, which is reinforced by 100 and 200-period SMAs from above. On the other hand, the pair should also find it difficult to escape the vicinity of major levels surrounding the spot price. In case bears eventually push CHF/JPY lower, they will face the next demand at 122.38/121.97 (monthly S2/Sep 4 high). In addition to that, they will have to violate two more weekly and one monthly supports, in order to reach the pattern's lower trend-line, which is the mid-term bearish target. Meanwhile, market sentiment is still favouring a decline, as 67% of all open positions are short.