CHF/JPY 1H Chart: Channel Down

On Sep 19 CHF/JPY peaked at 109.41 and since then has been on the decline—slowly but surely eroding the sharp rally made after a test of the 200-hour SMA. This bearish activity has been taking place within two falling trend-lines that the currency pair has been consistently respecting.

Accordingly, in the nearest future we do not expect the Swiss Franc to appreciate beyond 108.72, where the upper boundary of the channel resides, instead the pair should be inclined to move closer to 107.24, where it is likely to find the lower edge of the negatively sloped corridor and initiate a bullish correction before another down-leg.