Daniel.L

Potential Long Entry On CHF/JPY

Long
FX:CHFJPY   Swiss Franc / Japanese Yen
Waiting for a nice buy signal on Swiss Franc/Japanese Yen (4Hour). Reason being: We have a previous zone of resistance violated by the latest swing. As you can see, the price action on this pair is strictly bullish . We can draw a fibonacci retracement from 111.257 to 124.596 to find a potential area for price to go long again. The 0.382 retracement at 119.500 lines up with the 1.618 extension from 124.596. To further add to this, we can see that a price projection from the most major recent swing low would align exactly within the zone. There is so much confluence for this pair and I'm pretty confident with this setup. When it reaches that Potential Reversal Zone (PRZ) we can then drill down to our lower time frame (15 min for typical swing trade) to find a case for entry. Personally I look for a break and retest of the latest swing high as support, CCI above 0, and price above the 34 EMA . Those with a more mechanical strategy can look for potential targets at 126.180 and 128.136. Personally I will manage this trade with an open TP level, trailing stops behind each fib retracement. c;