The week of 23 Jan CHFJPY – Opportunity to grab +1300 pips … butBut do you have the discipline and patience??
This pair has been rising since June 2021 but things may be changing now. As my daily chart shows, price has crossed below the 200 SMA and has just retested it from below. Also important is the fact that it has been rejected with a nice pin bar on a daily basis. It is not the nicest looking downtrend but the sequence of lower highs and lower lows is very much present. We have enough evidence that the market is not accepting high prices.
As I said above, there is the potential of more than a thousand pips here. But holding on for a long period is not easy, it requires:
- a wide stop loss say +300 pips (to be above 143.10)
- total belief in this trade for a few months.
- the ability to see the market go against you multiple times.
- patience to hold the trade for an extended period of time.
- overcome the urge to move the stop to break even too early.
If you can do all that, this may be a great opportunity to obtain massive profits. This may be an early stage of a downtrend and if it continues and strengthens, it could last a long time. Otherwise, hold that bearish bias for several months and look to take multiple smaller trades as this pair makes its way to the downside.
Nothing is 100% in trading, but I have a high degree of confidence in this trade.
As always, use sound money and risk management and stay patient in all your trades.
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