CHF/JPY At Key Daily Support For Upside

Hello Fellow Trader!

CHF/JPY has made 114.000 a potent level for change in price behavior. It also collides with the 33 RSI band which since August has been the true oversold support level.

The base of a wedge provides us defined entry focus and stop levels we can hawk and enter at a a superior reward to risk ratio. IF: CHF/JPY fails 114.000, the next support level on daily would be the 200 EMA.

Key Points:
- Daily – 33 RSI level seems extremely sensitive at any major drops. Indicates oversold region for CHF/JPY
- Daily – 114.000
- 1 Hour - Price holding below the 200 EMA - Caution
- 1 Hour - Price hugging below the 50 EMA – Watch to reclaim above
- 61.8% Fibonacci support at current price using last major impulse.
- Crossed 4 - Hour trend line
- At wedge base – Wait for BULLISH CANDLE REVERSAL!

Key Levels:
Support – 114.000. 113.700
Resistance – 200 EMA, 115.150, 115.730

Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – Base of wedge – 114.000
Supporting Entry – Break of wedge – 114.25

Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing

The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks below 113.68 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:
Optimal Entry 114.000 – Target 1 115.150 = 3.6x Reward to Risk
Optimal Entry 114.000 – Target 2 115.730 = 5.4x Reward to Risk
Supporting Entry 114.25 – Target 1 115.150 = 1.6x Reward to Risk
Supporting Entry 114.25 – Target 2 115.730 = 2.6x Reward to Risk