A low test close on CHF/JPY
presents an opportunity for a long position. Today's low test price bar has tested the 114.70 level and is likely to close above it as well as above the 50% retracement
and the 20 ema
. There is, adding to this setup, supportive hidden bullish divergence
(trend continuation divergence). The Stochastic
indicator is in oversold territory and is due for a reversal. .
Although the daily chart
signs, the weekly price action is still in the pullback phase.
entry - above low test close
stop loss - below low test close, or 50 ema
target - initially at previous high (117), and above