This has had a big rejection from the resistance level and has continued down to support where it has finally slowed. I expect this to be a brief correction before continuing downwards.
For an entry to a short I want to see this break the support and then retest it as resistance. Then a short can be taken with a target at the next support of 113.819
This has retraced to 0.5 Fibonacci, looking for this to now continue downwards to the support level. Need to wait for confirmation of this first as MACD and EMA's are on the bullish side, need to see MACD start dropping and EMA's to cross back over. TP is just below 0.382 Fib at 116.234.
Due to the chaos caused in the markets this week by the Reddit group/Gamestop stock buying there have been big unexpected moves that have ruined some ideas on here. This is one of the lesser affected currency pairings as they are both safe haven currencies, but CHF is more so than JPY, that is why it moved in the direction it did.
From here we can expect this to...
CHF/JPY is at historical big resistance so do not expect this to break it. This past week it has rejected off this resistance and I would expect it to continue down to test the daily support at 116.20. JPY is very strong at the moment so it could easily break this support. Short term target is 0.5 Fib which is 115.765. Longer term target could see this retest...
This is a very simple break and re-test pattern.
If the price manages to hold above the structure lines marked for a significant period of time, then I will consider a buy position.
It is very early in the year so I would rather not get caught up in fixed biases yet.
We had a daily close inside the daily resistance area.
looking for our target on the 50% fib level.
Then tests 116.600 and 116.800 range before falling to 113.800
Entry - 117.550
SL - 118.000
TP1 - 115.750
TP2 - 113.800
CHFJPY TRADE IDEA. Price can go on 2 different ways. For the LONG position I would wait till the retest and after it bounces off, My TP is 150 pips and my SL is 60 pips. For the SHORT position I would wait till it breakes below and maybe retest the resistance, the TP for the SHORT position is 150 pips and the SL is 50 pips.
Nice setup this. After a decent push up we are expecting some retracement if not a complete reversal. CHF weakness should also help the cause. Price action is at a major level and we have seen bearish engulfing candle printed on the 4h chart.
I have gone short on this and marked tp and sl for you as well.
Trade safe and good luck.