FxWirePro: CHFJPY forms Bearish pattern, good to sell on rallies

Ichimoku Analysis (4-hours chart)

Tenken-Sen- 113.01

Kijun-Sen- 112.36

CHFJPY was trading higher for the past 1- month and jumped nearly 500 pips on weak yen. The demand for Safe-haven assets like yen, gold declined due to the opening up of economies and COVID-19 vaccine hope. USDJPY is trading well above 200-day MA and hits 7 –week high at 109.16. Any indicative break above 109.23 (200-W MA) confirms further bullishness.

The pair has formed a bearish AB=CD pattern and this confirms minor weakness. A dip till 112.50/112 is possible. The next major resistance to be watched is 113.64 and break above that level targets 114 (Mar 25th high)/114.27 (Feb 21st high). Major trend continuation only above 114.27.

It is good to sell on rallies around 113.60-65 with SL around 114.27 for the TP of 112.