The Swiss Franc has been trading in a one-month ascending channel against the Japanese Yen. The CHF/JPY exchange rate bounced off the bottom border of the channel on August 20 and had since reached an eight-month high level at the 117.49 area.
The currency pair breached a resistance line formed by the weekly R2 at 117.49 during the morning hours of today’s session. Given that the price has tested the resistance level as mentioned earlier, the next target for the rate will be the upper boundary of the one month channel at 118.15.
However, if that resistance line holds, the currency exchange rate could make a brief retracement towards a support cluster formed by the combination of the weekly and the monthly PPs at 116.68.