Let's dive into the CHFJPY chart and explore a potential buying opportunity in this pair.
As depicted in the chart, the price initially formed a bullish impulsive move, but it has since been undergoing a corrective descent for the past three days.
Today, it appears that the price has cleared out liquidity from the low created yesterday and established a bullish engulfing candle. Additionally, the price is currently situated at a static support area and is backed by support from the 61.8% Fibonacci level.
Given the price's current position at this significant level and considering the favorable risk-to-reward ratio, we are opting to open a position at this price. However, for a more conservative approach, you can choose to wait for the price to break above a short-term bearish trendline that has been constraining the price during this corrective descent.
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First target hit by the price, If you've found this analysis helpful, please take a moment to like, comment, or share your thoughts with me.