CHF/JPY – Bearish Reversal Setup in Progress (1H Timeframe)

We’re closely monitoring the CHF/JPY pair, which has been in a bullish trend. However, key signs of a potential reversal are now surfacing.

A rising wedge—a classic bearish reversal pattern—has formed on the 1-hour chart, and a strong bearish divergence is also present, indicating weakening bullish momentum. Additionally, sentiment data shows 85% of retail traders are short, giving us a slight contrarian warning.

The bulls vs. bears score is roughly 1:2, suggesting bearish strength is building. We’re waiting for a confirmed break of the previous higher low (HL), which would validate a structural shift into a bearish trend.

🔹 Pair: CHF/JPY
🔹 Timeframe: 1H
🔹 Trend: Bullish (reversal anticipated)
🔹 Pattern: Rising Wedge
🔹 Divergence: Bearish
🔹 Sentiment: 85% Short (Myfxbook)
🔹 Bias: Bearish
🔹 Entry (Sell Stop): 179.557
🔹 Stop Loss: 181.468
🔹 Take Profit: 177.646
🔹 Lot Size: 0.15
🔹 Risk/Reward: 1:1
🔹 Risk: $200
🔹 Potential Reward: $200

🎯 Strategy: Entry will trigger only if price breaks below the previous HL and confirms a new lower low (LL), signaling the start of a bearish trend.

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