CHFJPY | Perspective for the new weekThe Bullish run that begun mid-November 2020 gets caught and sandwiched in a Bullish rectangle pattern until it finally broke out of the range last week. This development hereby gives rise to a trading opportunity that we might exploit in the coming week(s).
Tendency: Uptrend ( Bullish )
Structure: Channel (Bullish rectangle) | Breakout | Supply & Demand
Observation: i. Bullish Rectangle: This pattern is described by horizontal lines showing significant Demand and Supply level which has been respected since late last year (2020).
ii. A successful Breakout of my Key level @ Y117.250 during the course of last week trading session is a signal pointing towards the idea that price might be anticipating new highs in the coming week(s).
iii. After the Breakout, price is presently going through a corrective phase and patience is required to ascertain where Buyers are going to resume the rally.
iv. My new and propose Demand level in the coming week shall be around Y116.650/117.200 where engulfing candle springing out of this zone might be a signal to follow.
v. It is important to state here that if the price significantly comes down Y117.250 and extend into Y116.400, I shall revert to my previous set up on this pair (see link below for reference purposes).
Trading plan: BUY confirmation with a minimum potential profit of 200 pips.
Risk/Reward : 1:4
Potential Duration: 2 to 7 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
