CHFJPY UPDATE
After a very long rally, price is at a very strong weekly resistant level which has rejected price lot of times. So it is normal for us also to expect a rejection on that zone until the other wise is proven. On the weekly we saw that the market has created a demand area before making the huge move to the upside. In fact we will not expect the market to come down to retest to demand area,but it will be normal the market to make a retracement. And when we use our Fibonacci, we see that the level that best aligns with structure is the 50% fib level.. So we might expect a retracement at that level as there is a confluence.
Fundamentally Speaking, according to the last report of the COT data, we saw that Institutions has being longing the CHF for a at least a month so, we might expect some profit taking.. while on the JPY they closed a lot of 10K longs and 13K short, making the currency strong at least on the short term.. Well we will wait for the market to show us a change of momentum(move from bullish to bearish) or a pattern (as i have identified.. i will post it in the description).
If that happens, then it we will take the trade with a good probability to the downside with a very good risk to reward.
Fundamentally Speaking, according to the last report of the COT data, we saw that Institutions has being longing the CHF for a at least a month so, we might expect some profit taking.. while on the JPY they closed a lot of 10K longs and 13K short, making the currency strong at least on the short term.. Well we will wait for the market to show us a change of momentum(move from bullish to bearish) or a pattern (as i have identified.. i will post it in the description).
If that happens, then it we will take the trade with a good probability to the downside with a very good risk to reward.
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