Trade Plan (Pending): I am buying CHF/JPY at 169.60
CHF Basket - Lower-than-expected Swiss inflation has resulted in the single currency moving to the downside. While the figure is encouraging, the breakdown of the release showing a 2% Y/Y increase for domestic products will be a point of concern for the switch National Bank (source Reuters). From a technical standpoint, the basket highlights support at 894. I look for limited downside pressure.
JPY Basket - there is no clear indication that the downward pressure is faltering. The basket will not complete a bullish Crab formation until 6418. Currently trading 6546.
Correlation studies suggest buying dips CHF/JPY.
CHF/JPY - we have seen a prolonged period of consolidation. We look to be building a bearish Butterfly formation, currently trading within the BC leg to the downside. Trend line support is located at 169.58. We will complete the cypher formation at 172.12.
Buying a dip at 169.60 with a stop below the previous swing low at 169.15 targeting inside the butterfly formation at 172.10 offers a risk-reward factor of 5.56R.
I am buying CHF/JPY at 169.60
SL: 169.15
TP1: 172.10
Risk/Reward Ratio of 5.56R
#tradeplan #CHF/JPY
JPY Basket - there is no clear indication that the downward pressure is faltering. The basket will not complete a bullish Crab formation until 6418. Currently trading 6546.
Correlation studies suggest buying dips CHF/JPY.
CHF/JPY - we have seen a prolonged period of consolidation. We look to be building a bearish Butterfly formation, currently trading within the BC leg to the downside. Trend line support is located at 169.58. We will complete the cypher formation at 172.12.
Buying a dip at 169.60 with a stop below the previous swing low at 169.15 targeting inside the butterfly formation at 172.10 offers a risk-reward factor of 5.56R.
I am buying CHF/JPY at 169.60
SL: 169.15
TP1: 172.10
Risk/Reward Ratio of 5.56R
#tradeplan #CHF/JPY