CHFJPY has formed lower highs and found support around the 166.00 major psychological mark, creating a descending triangle pattern on its hourly chart. Price is approaching the peak of the formation so a break could be in the works.

The 100 SMA is still below the 200 SMA to suggest that the path of least resistance is to the downside or that support is more likely to break than to hold, possibly sending CHFJPY lower by the same height as the chart formation or 400 pips.

Similarly a break above the resistance around the 167.00 major psychological mark could lead to a rally that’s the same height. The 200 SMA coincides with the triangle top to add to its strength as a ceiling, but the gap between the moving averages is narrowing to signal a potential bullish crossover.

In addition, stochastic is pointing up to show that buyers are ready to regain the upper hand. The oscillator has plenty of room to climb before reaching the overbought area, so CHFJPY could follow suit while bullish pressure is in play. RSI is on middle ground to reflect consolidation, barely offering directional clues at the moment.

CHFJPY could continue to take cues from overall market sentiment, as both safe-haven currencies have been drawing support from risk-off flows related to trade uncertainty.

Earlier in the week, some risk-on vibes were in play on account of Trump potentially delaying tariffs on Canada and Mexico, as well as the prospect of peace between Russia and Ukraine. However, these rallies retreated when Trump said that tariffs would be moving forward as scheduled and even threatened retaliatory measures on European products.

Data has been light from both Switzerland and Japan, although BOJ Governor Ueda had some cautious remarks on the potential impact of US tariffs on the global economy.