CHFJPY: basic rules of trading in crossesEach pair in the foreign exchange market is unique. But if we carry out some conditional classification of currency pairs, then we can single out those that are prone to trend movements and those that gravitate toward movement within the the outlined range (flat). The second type includes most of the cross-rates: EURJPY, EURCHF, GBPCHF, CHFJPY, etc. And even among these, gravitating towards flat assets, we can distinguish those that are even more inclined to move in the range. It's about CHFJPY.
This cross consists of quite similar currencies. Similar in the sense that both the Japanese yen and the Swiss franc are classified as safe havens. Or they perform the role of safe-haven assets in the foreign exchange market. Accordingly, in case of uncertainty or panic in financial markets, when other assets begin to move in a directional and one-sided manner, this cross occupies a waiting position and fluctuates in a relatively narrow range. In addition, the ultra-soft monetary policies of the Bank of Switzerland and the Bank of Japan contribute to an increase in the level of "similarity" of these currencies in the eyes of investors and traders.
So, the cross CHFJPY is a very attractive instrument for range trading.
In this regard, we want to pay attention to the current dynamics of the pair. Quotes came close to the level of 112 - the upper limit of the local range. That is, we have an excellent opportunity to open a short position. Sell objectives: bottom of the 110, and optimally - area 109.
As additional arguments in favor of the pair's sales, we can cite quite significant divergences that have formed over the past month: the price is parallel to the X axis, but the indicators (RSI, MACD) clearly point to the “south”. Recall that in the case of discrepancies between the directions of movement of indicators and price charts, as a rule, the "truth" is on the side of the indicators. That is, they indicate the correct direction. In this case, we are talking about depreciation of the CHF relatively JPY.
Summarizing, we can note that in the pair CHFJPY there is an excellent technical signal for sale, which should be not passed by. The risk / profit ratio is better than 1 to 3, which makes the sales of the pair from the current prices very attractive. Our recommendation is the sale of CHFJPY in the area 112 with the targets 110.20 (pessimistic scenario) or 109 (optimistic scenario).
Chfjpysell
CHFJPY - SETUP - WEEKLY CONTINUATION - 28 MAYWELCOME TO DACAPITAL TRADING!!
CHFJPY just started moving as expected, quick Timeframe breakdown for free and everybody.
4 HOUR
Strong H4 break below uptrend-line expecting further drop.
DAILY
Price is melting last 4 days after taking out 111.900 Key Area
WEEKLY
Overall very bearish couple of weeks with several lows formed
LEVELS
SHORT @ 109.847
SL @ 110.379
TP1 @ 109.282
TP2 @ 109.037
TP3 @ 108.773
Weekly trend continuation, move SL to BE if TP1 hit and close partial Profits at every TP Level.!
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DACAPITAL TRADING
I have seen an easy downside target on the chfjpy pair After careful analysis and chart pattern recognition I have identified an opportunity to take a short position on this ChfJpy currency pair. I have spotted a daily resistance equal to the weekly resistance level. Some consolidation is seen between the 114.400 - 113.800 levels. I stand firm with a 11.200 target #1 and another 110.00 target #2
CHFJPY Short OpportunitySeems like bulls can't break through this resistance level and has made multiple tops as a result. The bullish momentum from which this came from has been made too intensely and the bulls seem exhausted (or some may already be taking profits at this level) as shown by the decreasing volume.
Several reversal candle signals are visible such as the Bearish Engulfing, Tweezer Tops, and on lower time frames, Dark Cloud Cover.
RSI is showing divergence as well. We wait either for a breakout of the trendlines or breakout of the neckline before entering trades.
Double Top at Structure!Hi guys,
just to let you know why i'm shorting this pair, price has reached a key structure level (blue line) and here it's formed a nice double top with RSI divergence.
Stops above the highs, target1 and 2 as displayed in the chart.
If you want to ask questions or share your view, comment below.
Otherwise, see you in the next chart!
Double Top at StructureHi guys,
just to let you know why i'm shorting this pair, price has reached a key structure level (blue line) and here it's formed a nice double top with RSI divergence.
Stops above the highs, target1 and 2 as displayed in the chart.
If you want to ask questions or share your view, comment below.
Otherwise, see you in the next chart!
CHFJPY shorterm positionThe market is trading just below a trend line (the centre of the channel) dating back to the 3rd of the month. Momentum has been holding below the .3899 level. A break of the .3899 on momentum and the centre line of the channel on the market price will open up a long position aiming for the 114.20 area.