• CHF/JPY bulls could be looking to step in at a confluence of support. 
  • Bulls will look to target the channel resistance near 120.50.

CHF/JPY is in the process of a correction that could see the price ripen for an onward upside continuation. 

The following illustrates the bullish bias towards the daily channel highs:

Daily chart

Hourly chart

As seen, the hourly price action is moving in on the 38.2% Fibonacci confluence with the market structure on the daily chart as well as the 21-hour EMA.

This area would be expected to hold and result in an upside continuation to the test of the bearish commitments at the channel resistance near 120.50.