CHFJPY - The Safe Haven Race

Key points:
- Trading above 200 EMA

- Accumulation zone coincides with three month trend line

- Key level 115.500 broken in July and holds during August - Future support

- 2018 provided two key highs forming a double top seen in yellow

These levels on occasion provide a magnetic pull into the zone where stops may be present when accompanied by other technical signals like the respected 115.500 level that has now formed support.


The Risk:

Price is hugging the 50 EMA and trading well above the 200 EMA , suggesting we are still in bullish territory. Any violation of the 115.500 level could also cluster with a 200 EMA and trend line violation. In this case the long play should be closed.

Remember as traders it is your job to mitigate the risk and only trade structures that provide high probability, and great reward to risk ratios.

CHFJPY is providing 3.5 reward to risk to the first target with 4x + to break the 2018 highs.

Fundamentals:

With the equity markets brushing off Covid woes and the DXY ( US Dollar Index ) selling off rapidly and possibly finding a short term base, the CHF may strengthen further against it's safe haven rival JPY.

All my views are not advice. Please understand the risks involved when trading such assets and seek professional advice or guidance on how to mitigate your risk.

All the levels provided are zones and not exact figures. Your discretion and interpretation of these levels may differ to other fellow traders/investors.