CHFJPY is almost ready for long trade

JPY Strengthens and Creates a Swing Trading Opportunity
Today, I am going to do a swing trade analysis of CHF/JPY forex pair. I usually do swing trade analysis on a Daily time frame. This time frame helps me to see the big picture (which is needed for swing trading).

Trend Setup on CHF/JPY
The CHF/JPY was in a trend since the end of November 2019. Strong buyers were pushing the price upwards.
What I want to see there, is a nicely visible Volume Cluster. In such a Volume Cluster, volumes are accumulated.
If there is an uptrend, then it means, that buyers were adding to their positions there (in this Volume Cluster).
When the price returns back to this Volume Cluster, then it usually works as a support/resistance.

This is the case of the CHF/JPY.

Strong uptrend with nice Volume Cluster in the middle. When the price makes it back to this level again, then this Volume Cluster should work as a Support.
Why? Because the buyers who were pushing the price upwards and who were adding to their volumes there (in the Volume Cluster), will be defending their positions. So, when the price makes it back to this area, they will start aggressively buying and they will try to push the price upwards again.
You can see this on a picture below. The Support is marked around 111.70 area.

This means, that the level was a strong Resistance. When the price went past the Resistance, it then turned into a Support.

The cool thing about this is that this Support is at our Volume-based level (around 111.70)!

Happy trading

Dale