CHF/JPY Technical: Bullish exhaustion sighted below the key resistance of 166.60

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<li><strong>The recent four months of bullish acceleration may have reached a major climax condition at 166.60 resistance.</strong></li>
<li><strong>The short-term minor trend of CHF/JPY has turned bearish as it traded below the prior upward-sloping 20-day moving average.</strong></li>
<li><strong>Watch the key short-term resistance at 165.60 on CHF/JPY.</strong></li>
</ul>
<p>This is a follow-up analysis of our prior report, <em>“CHF/JPY Technical: Relentless uptrend movement”</em> published on 31 August 2023. Click <a href="https://marketpulse.com/forex/chf-jpy-technical-relentless-uptrend-movement/kwong">here</a> for a recap.</p>
<p>After recording an accumulated gain of +2,378 pips since January 2023, the cross pair <a href="https://www.oanda.com/sg-en/trading/forex/">CHF/JPY</a> seems to have lost its bullish mojo as it failed to make any headway above the 166.60 key major resistance and broke below its medium-term support at 164.50 (defined by the lower boundary of an ascending channel from 20 March 2023 low) yesterday, 11 September.</p>
<h2><strong>A major bullish climax may have been reached</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-32-22.png"><img loading="lazy" class="alignnone wp-image-807502 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-32-22-1024×599.png" alt="" width="700" height="409" srcset="https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-32-22-1024×599.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-32-22-300×176.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-32-22-768×450.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-32-22.png 1488w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 1:  CHF/JPY long-term term secular trend as of 12 Sep 2023 (Source: TradingView, click to enlarge chart)</p>
<p>The recent bullish acceleration move in the past four months may have reached a climax where price actions at the end of August 2023 formed a monthly bearish “Spinning Top” candlestick pattern coupled with the 3-month RSI oscillator hitting an extreme all-time high overbought level of 80.79 at this time of the writing based on data available since April 1972.</p>
<h2><strong>Short-term momentum has turned bearish</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-42-55.png"><img loading="lazy" class="alignnone wp-image-807503 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-42-55-1024×599.png" alt="" width="700" height="409" srcset="https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-42-55-1024×599.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-42-55-300×176.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-42-55-768×450.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/09/CHFJPY_2023-09-12_12-42-55.png 1488w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 2:  CHF/JPY minor short-term trend as of 12 Sep 2023 (Source: TradingView, click to enlarge chart)</p>
<p>Since 7 September 2022, the CHF/JPY has pierced below its 20-day moving average and started to form a series of “lower highs” and “lower lows”.</p>
<p>In conjunction with the 1-hour RSI oscillator that has also traced out similar “lower highs” below a parallel descending resistance at the 57-level which suggests short-term bearish momentum of price actions remains intact.</p>
<p>Watch the 165.60 key short-term pivotal resistance (also the 20-day moving average) and a break below the intermediate support at 163.80 (former minor range resistance of 21 July to 8 August 2023 & the 50-day moving average) may trigger a further impulsive slide to see the next support coming in at 162.10 in the first step.</p>
<p>However, a clearance above 165.60 negates the bearish tone for a push-up to retest the 166.60 key major resistance.</p>