CHFJPY - False Channel Break Possibly?
CHFJPY has broken off from channel.
I believe this a false break of the channel and expect CHFJPY to come strong at the end of the year.
There is no carry trade unwind in here and as Europe is in recession, CHF will remain bid.
Only issue here can be if the Suisse Central Bank comes out selling CHF to buy other currencies to ensure that the currency does not become too strong.
I do not buy into this narrative that Japan will suddenly get into this hiking cycle.
There will be hikes maybe, one or two at max. Japanese Banks can't afford high interest rates.
I believe this a false break of the channel and expect CHFJPY to come strong at the end of the year.
There is no carry trade unwind in here and as Europe is in recession, CHF will remain bid.
Only issue here can be if the Suisse Central Bank comes out selling CHF to buy other currencies to ensure that the currency does not become too strong.
I do not buy into this narrative that Japan will suddenly get into this hiking cycle.
There will be hikes maybe, one or two at max. Japanese Banks can't afford high interest rates.
Trade closed: target reached:
It's not testing the lower end of the channel.
Decided to get out of the trade. Good pips.
On the daily, it seems to be on the verge of forming a H&S.
Decided to get out of the trade. Good pips.
On the daily, it seems to be on the verge of forming a H&S.