CHFJPY Minor Forex Pair

Based on the recent price action of the CHFJPY minor Forex pair, which exhibited two consecutive days of upward movement following its interaction with the daily demand zone, we may be poised for a potential downward trend. Notably, the price encountered resistance at the 0.618 Fibonacci retracement level yesterday, suggesting that bearish sentiment is gaining momentum. This is further corroborated by the recent breach of the established trendline and the breakdown of the higher low structure on the 4-hour chart. 

Better Price Action on the 1-Hour Chart

As I analyze the 1-hour chart, it becomes evident that the recent trendline break exhibits three distinct touches. Following this, we observed a minor breakout; however, subsequent market behaviour displayed an aggressive movement that resulted in the violation of the higher low structure, particularly observable in the lower time frame.

Can We Identify a Trading Setup for Today?

The current price action on CHFJPY indicates a potential pullback toward the recently broken structure. It would be helpful to observe the formation of ABC waves during this movement. Once these ABC waves are established, it is advisable to draw a trendline along them. A break of this trendline could signal an entry point for a short trade, targeting the swing lows. We also correlate with most JPY pairs today; here is another setup on GBPJPY >

I will provide an update as soon as we observe more price action later in the day. Thank you for your attention.

Update: Feb 6