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Hello There!
Welcome to my new analysis about CHFJPY on several timeframe perspectives. The CHFJPY conditions have accelerated to an unnatural dynamic recently as the pair moved into new highs instead of the massive overbought condition and the fact that this main reversal into the bearish direction should have setup already long times before especially considering the deficit of capital flows in CHF against the JPY there is a lot of bearish pressure present for CHF.
On the broader perspective the pair is forming this gigantic ascending-wedge-formation in which it already penetrated the lower boundaries with crucial bearish momentum spikes into the lower direction. This means that once a huge bearish pressure spike below the lower boundary has setup this will lead to many long liquidation triggers down the road and will lead to further continuations into this perspective. When the bearish pressure accelerates heavily this will also lead to the massive head-shoulder-formation to be completed triggering further bearish liquidations and momentum.
Especially with a further increase of the deficit in capital flows between CHF and JPY this will lead to the main market momentum to convert into a bearish dynamic and will lead to the underlying bearish scenario perspective to be confirmed by traders and investors moving into a more bearish sentiment consideration. Once the whole head-shoulder-formation has completed the momentum is likely to accelerate to the target-zones mentioned.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
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