Yesterday's bar broke through all these levels as well as closing below the round number 110 suggesting further weakness and a continuation of the bear trend.
This prompted us to place our second position on this currency which was triggered earlier today and has instantly moved into profit. This is rare. Never expect instant gratification and in fact, expect trades to go against you first before moving into profit. This is why we always use wide stop-losses which gives us the option of tightening stops if needed rather than being spiked out prematurely.
With price on the CHFJPY now trading below 110, we want to see the bears keep control of the market and this fast moving trend structure continue all the way through to the next major level of support at 100. 2016 was when this level was last tested and when price failed to break through.
Many will try and pick the bottom of the trend at 100. This may work but as trend traders, our bias is always in the direction of the long-term trend. We would like to see price break and close below 100 and then continue to the next key support levels of 90, 80 and beyond.
This is looking strong for a continuation of the bear trend.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!