CHF/JPY is in command, awaiting a critical support test.
For the bears, 120.30 is a critical level that must be breached.
Within the daily correction, the price of CHF/JPY is losing momentum, and the chart below shows the beias to the downside on a break of support structure.
From a daily standpoint, the price is shaping up for a lower high, which would result in an M-formation.
A break of the 21-EMA and recent lows in a confluence supporting range between 120.14/25 will be exploited by the bears.
On an hourly basis, this appears to be a sturdy structure that should be noted if the price drops below it.
With that in mind, it’s possible that 120.30 will operate as a support, resulting in a failed downside test.
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