USD/CHF and USD/JPY Divergence Brewing Near CHF/JPY Resistance

The US dollar's performance across major currencies is mixed, with USD/CHF maintaining a strong bullish structure and momentum on USD/JPY beginning to fade.

However, CHF/JPY may provide an additional clue as its countertrend rally approaches a resistance cluster that could favor renewed Swiss franc outperformance against the Japanese yen.

The daily chart for USD/CHF shows a strong rally from its lower trend channel since August, with a four-day pullback losing momentum and hinting at a swing low.

On the other hand, the technical analysis of CHF/JPY suggests that its bounce could be limited due to bullish momentum waning around a cluster of prior highs and lows, while the monthly S1 pivot is near the 194 handle.