cryptoyoda
Short

CHFJPY topping out?

FX:CHFJPY   Swiss Franc/Japanese Yen
209 9 0
Context: CHFJPY             has been contained in a gently upsloping, well-confirmed fork since H2 2008, largely remaining below the median line pre-Abenomics.
See:
snapshot
in comment.

A rally from the low 80s in summer 2012 is nearing the top of the fork, and has so far failed to convincingly break the CD mid-point (P) of the last ABCD on the weekly chart, closing both below it, and coincident sliding parallel resistance. The modest upward slope of the fork (~1 JPY/year) by comparison with its width (30 JPY) suggests that that it might be worthwhile considering a short position.

=>
A) If CHFJPY             slides, short at the weekly P & coincident sliding parallel (107.68), stop loss at the corresponding D 109.66. (It might be possible to find a closer stop position that makes sense based on intraday charts as the opportunity arises.)
or
B) If it meanders unconvincingly towards D of the daily ABCD, the upper MLH should provide strong resistance, justifying a short there 110.2, stop loss above highest sliding parallel (~110.9).

Target: upper quartile (~102.7; it's hard to imagine the BOJ allowing JPY to strengthen enough to take it back to the ML)
R/R ratio - A: 1.9, B: 8.8

Disclosure: I'm making this up as I go along. Feedback welcome, trade at your own risk! Good luck :)
cryptoyoda
3 years ago
snapshot
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ForceFollower
3 years ago
A deep analysis. However, it's hard to tell, if the up trend has actually died out: the trend line is still intact, and the franc is stronger that the yen. So, as far as I'm concerned, I'll be rather flat or long. Maybe I'm myopic, but if anything interesting happens here in the coming week, I'll still be looking to go long rather than short.
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cryptoyoda ForceFollower
3 years ago
You could well be right. :) This is based more on hidden pivots which I *think* I understand a bit better than the forks; there's a tendency for trend reversals at the midpoints of CD legs, and at the Ds. If the daily ABCD completes taking CHFJPY well clear of the weekly CD midpoint, the d at around 117 would be the next targets.

The SNB reacted when the CHF was around 110 in 2011, but the CHF index is probably quite a bit weaker right now on a trade-weighted basis, so maybe CHFJPY has headroom before they'd try to intervene.
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ForceFollower cryptoyoda
3 years ago
I'm sorry I still haven't updated myself on Hidden Pivots. I didn't have time this weekend, but I will make up for it in the coming days. As soon as I find out what it's all about I will be able to address your analysis.
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cryptoyoda ForceFollower
3 years ago
Have a look at the forex chats. Let me know if you missed it :)
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ForceFollower cryptoyoda
3 years ago
Yes, I missed it. Thanks for the link to vimeo - Rick Ackerman.
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cryptoyoda ForceFollower
3 years ago
Check again!
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cryptoyoda
3 years ago
CHFJPY is now poised on the midpoint (P=108.5) of the daily ABCD's CD leg:
snapshot

If 108.5 becomes support, this provides a setup for a long trade targetting the D of the larger ABCD with a ~4.5 RRR. (Intermediate target/ profit taking point: the smaller pattern's D, RRR = 2)
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cryptoyoda cryptoyoda
3 years ago
Oops, text got in the way:
snapshot
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