CHFJPY Multi Time Frame Detailed Analysis - Short Setup
Yellow zones- critical zones based on the monthly/weekly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange line - critical point based on the monthly time frame
According to last week’s COT Report- the Swiss Franc is in a strong position, based on its bullish positions, but the lack of increase of dealer contracts may be a sign of a sudden change in directions. The COT Data on JPY is also bullish , but a more precise picture on the future direction will wait for another 2,3 weeks.
From a monthly perspective we’re in a channel since the beginning of 2001 and it has been respected multiple times throughout the years. The last contact with the channel was in November 2015 when it made a false breakout above the upper-trend line. Now we should be in a downtrend till we touch the bottom trend line .
On the weekly time frame, we are in a closed triangle formation which can be the trigger for the continuation towards the bottom of the channel. For the past month there have been 4 rejections from the nearby monthly critical area. This week was the strongest rejection among them all.
On the daily time frame, we have 2 critical zones that can be decisive for our scenario to work. We need to monitor them frequently. On this time frame we can see the possible build up for a “M” formation which will be a good confirmation for our plan.
On the 4H time frame: The close above the monthly critical was a definitive sign that the price will continue climbing, but it then got rejected and so the reverse head & shoulders structure also failed. Surely a lot of buyers got stuck in that zone. The entry point at the neckline of our future “M” formation must be confirmed with a strong rejection. After that the price must go towards the bottom trend line of the weekly closed triangle.
Hope you enjoyed my analysis. If you did, please leave a like, comment or follow. Thank you!
Happy Trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange line - critical point based on the monthly time frame
According to last week’s COT Report- the Swiss Franc is in a strong position, based on its bullish positions, but the lack of increase of dealer contracts may be a sign of a sudden change in directions. The COT Data on JPY is also bullish , but a more precise picture on the future direction will wait for another 2,3 weeks.
From a monthly perspective we’re in a channel since the beginning of 2001 and it has been respected multiple times throughout the years. The last contact with the channel was in November 2015 when it made a false breakout above the upper-trend line. Now we should be in a downtrend till we touch the bottom trend line .
On the weekly time frame, we are in a closed triangle formation which can be the trigger for the continuation towards the bottom of the channel. For the past month there have been 4 rejections from the nearby monthly critical area. This week was the strongest rejection among them all.
On the daily time frame, we have 2 critical zones that can be decisive for our scenario to work. We need to monitor them frequently. On this time frame we can see the possible build up for a “M” formation which will be a good confirmation for our plan.
On the 4H time frame: The close above the monthly critical was a definitive sign that the price will continue climbing, but it then got rejected and so the reverse head & shoulders structure also failed. Surely a lot of buyers got stuck in that zone. The entry point at the neckline of our future “M” formation must be confirmed with a strong rejection. After that the price must go towards the bottom trend line of the weekly closed triangle.
Hope you enjoyed my analysis. If you did, please leave a like, comment or follow. Thank you!
Happy Trading!
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