Bearish Continuation Setup on CHF/JPY
03 October 2025
In today’s technical analysis, let’s take a closer look at two traditional safe havens, starting with the Swiss Franc to Japanese Yen (CHF/JPY). Since the end of September, the pair has been locked in a clean downtrend, with sellers consistently taking control. The structure is very technical, with price movements respecting horizontal levels almost to the point of precision. Each yellow horizontal level that once acted as support has later flipped into resistance after being broken, reinforcing the bearish sentiment.
The most recent development is no exception. The price bounced decisively off another yellow resistance, confirming sellers’ dominance in this zone. Adding to the negative outlook, CHF/JPY also rejected the upper boundary of a wedge pattern, marked with black lines. This wedge aligns perfectly with the overall bearish structure, hinting at potential continuation to the downside.
For now, though, traders are waiting for confirmation. The key lies in the lower black wedge line. A decisive breakout below that support would provide a fresh sell signal, opening the door for another leg lower. Until then, the sentiment remains cautious but tilted to the downside, with sellers clearly having the upper hand.