CHFJPY shorts could be soon activated. Stay patient and lets explain the upcoming opportunity:
1. We are able to observe that since september 21 2018 a downward trend has been forming, being respected at every touch. This shows us that the trend is clear, not looking for anything else rather than shorts.
2. Price managed to break the weekly resistance, retesting it and falling with strength to touch the next weekly support.
3. Since then, price has been consolidating between these 2 zones , respecting the downward trendline.
4. Finally, last week price broke the weekly support (now weekly resistance), so what we are expecting is a retest of this zone to recover from this strong selling. After this, we would like to see a 4 hour, or, preferably a daily, bearish engulfing candle to confirm our entry. Patience is key guys.
Fundamentally we see a week CHF due to certain aspects of its economy weakening and a strong JPY due to safe haven flows during the last weeks due to global uncertainty.
Stop loss: slightly above latest daily lower high, around 108.500-108.550
Take profit: monthly support, around 103.600
1. We are able to observe that since september 21 2018 a downward trend has been forming, being respected at every touch. This shows us that the trend is clear, not looking for anything else rather than shorts.
2. Price managed to break the weekly resistance, retesting it and falling with strength to touch the next weekly support.
3. Since then, price has been consolidating between these 2 zones , respecting the downward trendline.
4. Finally, last week price broke the weekly support (now weekly resistance), so what we are expecting is a retest of this zone to recover from this strong selling. After this, we would like to see a 4 hour, or, preferably a daily, bearish engulfing candle to confirm our entry. Patience is key guys.
Fundamentally we see a week CHF due to certain aspects of its economy weakening and a strong JPY due to safe haven flows during the last weeks due to global uncertainty.
Stop loss: slightly above latest daily lower high, around 108.500-108.550
Take profit: monthly support, around 103.600