Hammer Candle Sparks Bullish HopesSwiss Franc / Japanese YenFOREXCOM:CHFJPYdavidscuttCoiling within a falling wedge and having printed a hammer candle on the daily timeframe last Friday, a resumption of the broader bullish trend in CHF/JPY may soon be on the cards. However, with RSI (14) and MACD turning neutral on directional bias, confirmation of the bullish signal would be preferred before considering long setups. 192.70 is a level worth keeping an eye on during Monday’s session, coinciding with the high set on 30 October where the price bounced strongly following a failed downside break on Friday. Should we see a retest of the level followed by another bounce, it would strengthen conviction about establishing long positions, creating a setup where entry could be made above the level with a stop beneath it or Friday’s low to protect against an extension of the latest pullback. The first topside level of note for bulls would be the November downtrend, currently around 194.00. If the pair were to break and hold above this level, it would signal a potential return to the November high of 195.73, putting both it and horizontal resistance at 194.57 on the radar as other bullish targets. Of course, should CHF/JPY resume its push lower, it would open the door for bearish setups, especially if we see a close beneath 192.70. If that were to eventuate, shorts could be established on the break with a stop above for protection, targeting the influential 50DMA where the price has bounced on six separate occasions since August when breached. A sustained move beyond that level would put 190.54 resistance and uptrend support dating back to February on the radar for bears. Good luck! DS