CHFJPY Forming Rising Wedge

CHFJPY is trading around 184.50 after breaking down from a rising wedge formation on the daily chart. This technical pattern typically signals bearish continuation, and the decisive breakdown suggests sellers may now push price lower toward the 180.00 and potentially 176.00 regions in the near term. The rejection near 187.00 shows exhaustion from buyers, setting the stage for a deeper retracement as momentum shifts.

On the fundamental side, the Swiss franc remains weighed down by softer inflation expectations and the Swiss National Bank’s cautious stance, which limits upside strength. Meanwhile, the Japanese yen is finding renewed demand as global markets remain sensitive to risk sentiment and investors anticipate a gradual tightening stance from the Bank of Japan. This policy divergence provides a bearish undertone for CHFJPY, aligning with the recent technical breakdown.

The pair is now testing levels not seen since mid-summer, and further downside is likely if sellers maintain control below 185.50. Traders should closely monitor how price reacts near 183.50; a clean break could accelerate momentum toward 180.00, while any pullback toward 186.50 is expected to face fresh supply.

Market volatility could increase with upcoming BOJ commentary and global risk flows, making CHFJPY a prime candidate for short opportunities. As long as the pair stays below the broken wedge structure, the bearish outlook remains intact with strong potential for profit-taking on the downside.