CHF/JPY - Break Of 109.400 Consolidation To Continue To 108.00
Leading into this morning's London session the Swiss Franc -at the time of writing this- trades steadily against the Japanese Yen at 110.15.
Taking a look at the weekly timeframe we have been trapped since the flash crash at the start of the year. With a violent spike to the downside of 350 PIPs on the weekly taking a look on the daily timeframe, we have been trapped in consolidation for 27 consecutive trading days.
Looking on the daily timeframe we can see price action has time and time again tried to stop hunt people with a shooting star at the start of the consolidation and a massive hammer off support early last week. Taking a look at the 4-hour timeframe we have continuously found support at 109.400 and resistance at resistance at 110.400. What I will be looking for is a daily closure to initiate a new leg in the market. We need to see the benefit of the doubt in this situation and potentially grasp intraday opportunities with good risk reward trades off minor support and resistance.
With the Global market uncertainties, as well as Donald Trump, creating urgency with the Mexican Border wall investors tend to shift capital into safe havens such as Gold and Japenese Yen. On the other hand, we have the Swiss National Bank(SNB) who is very conservative over the value of there Swiss Franc as seen in the past. For these reasons I do favour further downside on this pair however, I need a daily break of the minor support of 109.400 which could initiate a new leg to 108.000. What would invalidate this trade setup would be a daily closure about minor resistance of 110.400.
Taking a look at the weekly timeframe we have been trapped since the flash crash at the start of the year. With a violent spike to the downside of 350 PIPs on the weekly taking a look on the daily timeframe, we have been trapped in consolidation for 27 consecutive trading days.
Looking on the daily timeframe we can see price action has time and time again tried to stop hunt people with a shooting star at the start of the consolidation and a massive hammer off support early last week. Taking a look at the 4-hour timeframe we have continuously found support at 109.400 and resistance at resistance at 110.400. What I will be looking for is a daily closure to initiate a new leg in the market. We need to see the benefit of the doubt in this situation and potentially grasp intraday opportunities with good risk reward trades off minor support and resistance.
With the Global market uncertainties, as well as Donald Trump, creating urgency with the Mexican Border wall investors tend to shift capital into safe havens such as Gold and Japenese Yen. On the other hand, we have the Swiss National Bank(SNB) who is very conservative over the value of there Swiss Franc as seen in the past. For these reasons I do favour further downside on this pair however, I need a daily break of the minor support of 109.400 which could initiate a new leg to 108.000. What would invalidate this trade setup would be a daily closure about minor resistance of 110.400.