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  • CHF/JPY is in the throes of correcting the overextended W-formation’s bullish impulse. 
  • Bulls will seek to protect the upside and target the weekly objective.

As per the prior analysis, CHF/JPY Price Analysis: Bulls look ahead to weekly structural target, the market has gone according to the game plan and the following illustrates what could be in store for the cross next.

For a recap, the daily target was located at 117.50 and was reached. 

Meanwhile, the weekly objective is still in play in 118.25.

We have a daily W-formation from which a correction to at least the 38.2% or a 50% mean reversion that meets the neckline of the W pattern would be expected to act as a firm support. 

The cross would then be expected to run higher towards the 118.25 objectives.