CHF/JPY Eyes Major Buy Signal as Cup and Handle Completes
23 October 2025
In today’s technical analysis, let’s take a look at the Swiss Franc to Japanese Yen (CHF/JPY) pair — a classic battle between two traditional safe-haven currencies. What’s developing on the chart is a very promising technical setup, one that often precedes a major bullish continuation. The pattern in focus is the cup and handle formation, which is nearly complete. As marked on the chart with yellow rectangles, the “cup” portion of the formation has been smoothly carved out over the past several weeks, showing steady accumulation and recovery from earlier declines.
Now, the pair has just finished shaping the handle, which typically represents a short-term consolidation before a breakout. This handle phase is often where traders take profits or new buyers prepare to enter before a surge higher. The overall structure is healthy, and the price action suggests that bullish pressure is building up just below a critical technical level. The key resistance here is the orange horizontal line, which represents the neckline of the entire formation.
The trading plan is clear — the major buy signal will be triggered once the price closes a full daily candle above the orange resistance. Such a breakout would confirm the completion of the cup and handle formation and open the door for a long-term bullish move on CHF/JPY. Until that happens, the situation remains in its final pre-breakout stage, but the sentiment is decidedly positive, with buyers clearly in control.