Swiss Franc vs. Japanese Yen: Awaiting a Critical Breakout

In today’s technical analysis, we’re focusing on the Swiss Franc to Japanese Yen pair, two of the market’s traditional safe havens. Recently, from the end of June through early July, this pair exhibited a channel-up formation, delineated in green. On July 11th, a breakout to the downside occurred, leading the price to now form a descending triangle, with horizontal support and a descending dynamic resistance. This setup indicates a critical juncture, where the market could go either way.

Today, the price is rebounding off the lower boundary of this descending triangle. This bounce might provide temporary optimism for traders looking for short-term gains. However, descending triangles often suggest a potential breakout to the downside. Still, traders must remain vigilant and reactive to emerging market movements. Monitoring the close of today’s session is crucial, as it will offer clearer signals about the market’s future direction.

For traders, the next steps are clear: if the price closes below the lower yellow line, it will confirm a sell signal, suggesting further downside potential. Conversely, a close above the upper yellow line would indicate a buy signal, suggesting the market could rally. This analysis underscores the importance of being ready to act on market cues as they develop.

Source: https://www.axiory.com/analytics/technical-analysis/swiss-franc-vs-japanese-yen-awaiting-a-critical-br