Nataly Kambur
⬤ CHF/JPY just hit a critical support level after pulling back into what traders call the "blue box" on the one-hour chart. This zone is where smart money typically watches for bounces during corrections. The pair dipped into this area and quickly stabilized—exactly what bulls wanted to see.
⬤ The pullback played out cleanly as a correction following the earlier rally. It dropped in an orderly fashion and bottomed right in the blue box zone, which lines up with an equal-legs measurement. Once price hit this level, selling pressure dried up and the pair started to react. Bottom line: this looks like a healthy pullback, not a trend reversal. The chart clearly marks this as a no-sell zone, reinforcing that the support is holding firm.
⬤ Elliott Wave analysis shows the bigger bullish picture is still in play as long as price stays above the invalidation level. Sure, the near-term action turned down into support, but the bounce from the blue box keeps the upside scenario alive. The projected path suggests more gains could be coming once this corrective phase wraps up—assuming support continues to hold.
⬤ This matters because CHF/JPY often signals shifts in risk appetite and the strength balance between safe-haven and higher-yielding currencies. When a well-defined support zone triggers a reaction like this, it shows there's real demand underneath. As CHF/JPY moves away from the blue box, traders will be watching whether it can push higher or just chop sideways for now. How price behaves here will likely set the tone for near-term volatility and direction.
Nataly Kambur
