CHF JPY - Weekly test
Hello Traders and Analysts,
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Master Key for zones
Four day view
The four day chart has provided key information with a great opportunity to highlight the sell area using the Fibonacci tool as a confirmation. Ideally to show a true confirmation - price would look to fill the wick of long legged wick which breaks the scarlet zone [initially]. This will show where price should look to before selling.
The zone is clear here where price will react before the sell imbalance probability takes over.
Weekly imbalances
The weekly imbalances are here to provide the clear view from where price will have considerable tail offs as sellers take over from the buyers.
The reason for the key weekly zones forming under the monthly is where lower highs have taken place meaning that the monthly imbalance and price cannot offer a retest of said zone.
Monthly Imbalances
The monthly imbalances are clearly laid out which present the high and low of the imbalance, the top imbalance has not entirely been tested where a monthly close has tested the 119 - 124 zone, however this being said. Price has reverted to test the Weekly imbalance where price has successfully filled the wick in August 2014 which is where looking left the entire weekly zone has build the structure from.
Cross Pair Analysis
Using the cross pair analysis using the basis of
USD CHF - Orange
EUR SGD - Purple
The weekly chart shows the relationship using the positive correlated pair [EUR SGD] against an the USD CHF a major pair with negative correlation. The imbalances are not shown here, however the key takeaway from the chart here is to understand what the USD is doing and the other major [Euro] is having an inverse imbalance at the present moment. Although CHF JPY are fundamentally two safe haven currencies - the aligned weekly cross sectional zone shows scope for a negative [sell] imbalance probability for CHF JPY.
Using solely CHFJPY & USDCHF adding imbalances [line chart] shows a simplified view of imbalances where price can show USD CHF next imbalance zone where price will climb to and CHF JPY inverse.
Sell position entry points
Using the 4 day Fibonacci tool, a retracement is required where a nice liquidity wick will need to be filled.
This will be a key area to monitor for shorts as a double weekly test is highly probable.
Possible entries [Daily]
Now that price has tested the "0" Fibonacci creating a bottom, price has created over the last few days some wicks but created an engulfing candle - price will now to look to close the wick fill and move towards 118.60 - where a double top formation has occurred.
Do you enjoy the setups?
*Professional analyst with 5+ years experience
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Master Key for zones
- Red = Three Month
- Blue = Monthly
- Purple = weekly
- Scarlet - Four day
- Orange = Daily
- Magenta = 8 Hour
- Grey = 4hour
- Pink = 1 hour
Four day view
The four day chart has provided key information with a great opportunity to highlight the sell area using the Fibonacci tool as a confirmation. Ideally to show a true confirmation - price would look to fill the wick of long legged wick which breaks the scarlet zone [initially]. This will show where price should look to before selling.
The zone is clear here where price will react before the sell imbalance probability takes over.
Weekly imbalances
The weekly imbalances are here to provide the clear view from where price will have considerable tail offs as sellers take over from the buyers.
The reason for the key weekly zones forming under the monthly is where lower highs have taken place meaning that the monthly imbalance and price cannot offer a retest of said zone.
Monthly Imbalances
The monthly imbalances are clearly laid out which present the high and low of the imbalance, the top imbalance has not entirely been tested where a monthly close has tested the 119 - 124 zone, however this being said. Price has reverted to test the Weekly imbalance where price has successfully filled the wick in August 2014 which is where looking left the entire weekly zone has build the structure from.
Cross Pair Analysis
Using the cross pair analysis using the basis of
USD CHF - Orange
EUR SGD - Purple
The weekly chart shows the relationship using the positive correlated pair [EUR SGD] against an the USD CHF a major pair with negative correlation. The imbalances are not shown here, however the key takeaway from the chart here is to understand what the USD is doing and the other major [Euro] is having an inverse imbalance at the present moment. Although CHF JPY are fundamentally two safe haven currencies - the aligned weekly cross sectional zone shows scope for a negative [sell] imbalance probability for CHF JPY.
Using solely CHFJPY & USDCHF adding imbalances [line chart] shows a simplified view of imbalances where price can show USD CHF next imbalance zone where price will climb to and CHF JPY inverse.
Sell position entry points
Using the 4 day Fibonacci tool, a retracement is required where a nice liquidity wick will need to be filled.
This will be a key area to monitor for shorts as a double weekly test is highly probable.
Possible entries [Daily]
Now that price has tested the "0" Fibonacci creating a bottom, price has created over the last few days some wicks but created an engulfing candle - price will now to look to close the wick fill and move towards 118.60 - where a double top formation has occurred.
Do you enjoy the setups?
*Professional analyst with 5+ years experience
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
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