CHFJPY - SELL IDEA

The CHFJPY pair's recent price movements suggest we may be looking at the onset of a bearish Elliott Wave. The formation appears to have completed an impulsive wave (3), followed by a corrective wave (4), which has retraced to a classic Fibonacci level. If this pattern holds, wave (5) might take the pair further down, potentially creating a SHORT opportunity.

The pair's struggle to maintain upward momentum and the retreat from Fibonacci retracement levels between 0.382 and 0.5 give credence to the expected downtrend. Moreover, the Swiss Franc's strength as a safe-haven currency may be tested against the Japanese Yen's own haven status, especially in a risk-off market environment.

A prudent SHORT strategy would involve entering near the end of wave (4), with stop-loss orders placed above its peak to manage risk effectively. Targets could be projected by extending wave (1) to find potential support levels where wave (5) may complete.

Traders should remain vigilant, as Elliott Wave setups demand flexibility and responsiveness to price action, particularly with JPY pairs known for their volatility

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