CHFJPY has been carving out a series of higher lows connected by a newly-forming ascending trend line, suggesting that bulls are steadily building pressure on this pair.

Price recently pushed to a swing high at 204.485 before pulling back, and the Fibonacci retracement tool highlights the levels where buyers could be waiting to join the uptrend.

The 38.2% Fib sits at 203.744 and could be the first support level to attract fresh demand on the current dip.

A deeper correction might bring the 50% level at 203.515 into play, followed closely by the 61.8% Fib at 203.286, which aligns with the ascending trend line and could serve as the line in the sand for a bullish pullback.

If any of these levels manage to hold as a floor, CHFJPY could resume the climb back toward the swing high at 204.485 or potentially push even higher. A break below the 100% Fib at 202.544, on the other hand, could signal that the near-term bullish momentum has run its course.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside, and the gap between the two indicators continues to widen, reflecting strengthening bullish pressure beneath current price levels. Both moving averages are sloping upward and could provide dynamic support on any extended dips.

Stochastic is heading lower and approaching the oversold region, which could reflect exhaustion among sellers rather than a full-blown bearish reversal. Once the oscillator reaches oversold and turns back up, that could be the signal that buyers are eager to return.

RSI is also sliding south with room to cover before reaching oversold territory, suggesting that the pullback could extend a little further before finding its footing. A turn higher in RSI near one of the Fibonacci support levels would add further confluence for a potential bullish bounce and resumption of the broader uptrend.