CHF JPY due for a pullback?Hi guys,
The CHF JPY has again made a strong move to the upside, as it has been doing for the best part of two years now. Price is heading towards an area where we may get the chance to find some LTF sell setups.
The dashed black line above the chart represents the 1.27 retrace of the latest swing low to high daily and previous swing low to high daaily... i.e the last two correction lo to hi retracements of 1.27 and 2.0 respectively, which both are pretty much at the same price level.
There is also a harmonic butterfly bearish pattern that will be complete at 1.27 retrace point, coinciding with the fib price levels.
The CHF JPY is also showing big divergence on RSI heading into this area and is pretty well extended from all its key MA's ( The MA's on the chart are the 20 50 and 200 daily MA's.)
Waiting for a trendline break or double top, engulfing candle etc on LTF or a lower low on RSi and retest of downward trendline could present with nice risk to reward trade from this level.
Safe trading all.
