CHF/JPY Builds Momentum Inside Rising Channel

CHF/JPY remains in a well-defined rising channel marked with red boundaries. The broader structure is clearly bullish, with price respecting both the lower and upper limits of the channel with notable precision.

Inside this channel, we can identify two continuation formations. The first was an orange flag that resolved with a breakout to the upside, confirming trend strength and leading to further gains. That breakout reinforced the bullish bias within the channel.

Currently, price is forming a smaller green flag. Given the prevailing uptrend and the channel context, this formation statistically favors another breakout to the upside. If price manages to break above the upper boundary of this green flag, it will generate a fresh buy signal. The immediate target would be the upper red boundary of the rising channel, with the possibility of an overshoot beyond it if momentum accelerates.

The alternative scenario must also be considered. A breakdown below the lower boundary of the green flag would activate a short-term sell signal. In that case, the likely target would shift to the lower red boundary of the broader rising channel.

For now, the structure remains constructive. As long as CHF/JPY holds inside the ascending channel and the flags continue to resolve higher, the trend bias stays bullish.

Source: https://www.axiory.com/analytics/technical-analysis/chf-jpy-builds-momentum-inside-rising-channel