CHFJPY: Structure Favors Continuation Towards 198.00CHF/JPYOANDA:CHFJPYJCW-Fx21CHFJPY continues to present a bearish technical outlook following the completion of a Head and Shoulders reversal pattern beneath the 204.00 resistance zone, signalling a potential shift in market structure after an extended rally. Since confirming the neckline break, price has remained below the 200-period moving average, reinforcing the broader bearish trend. The current recovery appears corrective rather than impulsive, with the 201.00–202.00 region acting as a key resistance cluster where previous structure, the 200 MA, and dynamic resistance converge. Should price reject this area and establish another lower high, I will be looking for bearish continuation towards the April swing low around 198.00. However, a sustained 4-hour close above 202.00 would invalidate this thesis by suggesting buyers have regained control and the current downtrend may be losing momentum. From a fundamental perspective, this outlook is supported by the evolving monetary policy divergence between Switzerland and Japan. Expectations that the Bank of Japan will continue its gradual policy normalisation, combined with the potential for a more accommodative stance from the Swiss National Bank, could further narrow the interest rate differential between the two economies, providing relative support for the Japanese yen against the Swiss franc. Additionally, any deterioration in global risk sentiment or unwinding of carry trades would likely increase demand for the yen, adding further downside pressure to CHFJPY. While price action will ultimately determine whether this scenario unfolds, the current technical structure and macro backdrop remain aligned in favour of a bearish continuation unless the 202.00 resistance region is decisively reclaimed.