Chfjpysetup
CHFJPY / TECHNICAL CHART - "WEDGE"Pair: CHFJPY
Trade : Long
Time Frame : 1 Hour
Strategy: Wedge
DISCLAIMER:
Please note I am only providing my own trading information for your benefit and insight to my trading techniques,
you should do your own due diligence and not take this information as a trade signal.
CHF/JPY - 150 Pips OpportunityCHF/JPY is heading for a break of the 50 EMA on the 8H chart.
On the 1H chart, it has broken the 200 ema for the first time since it's bullish run.
As long as the 200 EMA on the 1H chart holds strong as resistence, we can expect CHF/JPY to drop 150 pips+.
*Give it 1-2 more hours for the confirmation of the move.
Trade safe.
CHFJPY testing major support, prepare for a bounce
Buy above 115.90. Stop loss at 115.44. Take profit at 117.10.
Reason for the trading strategy (technically):
Price is testing major support at 115.90 (61.8% Fibonacci extension, horizontal overlap support, Fibonacci retracement) and we expect a strong bounce from this level to push price up towards 117.10 resistance (50% Fibonacci retracement, horizontal overlap resistance).
Stochastic (55,5,3) is seeing major support above 5.9% where we expect a corresponding bounce from.
Bearish AnalysisOn the 1 Week, price has failed to create a Higher High to break the Weekly Resistance (Fib 0.50); instead created 2 Lower highs. A break of a Lower Low beneath the Weekly Trendline will confirm The Long term bearish Trend. Fib 0.382 has held strong since November and has proven to be an area of rejection/ confluence.
Inverted Triangle forming on the 1 week so a Downtrend is expected if it breaks trendline.
After breaking inner Trendline on the 4H, I expect a surge to the upside to test 4H Resistance before retracing to complete it's Bearish Trend. (The inner Trendline actually forms a longer Bearish trendline extending from October when viewed on the Weekly Time-frame.) If viewed from that angle, price has failed to break above that Trendline which is a 'partial' confirmation that Sellers are pushing buyers out.
A Short term (120 + pips) Bearish trade can be taken within the Triangle once price retraces from the 4H, before looking for long Bearish Swing Trades.
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.
Break-Out Buying for CHF/JPYThis pair is inside a short range and for me, the range is nothing but a "Bull Flag" on the Daily. Hope a massive bullish rally is waiting but for now we have a small bullish opportunity on this pair. I will wait for the price to break the pink tread-line (as shown in chart) to the upside to take a long position.
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