Posts Tagged ‘CHFJPY Analysis’
When you have a trading plan, trading becomes much easier. You don’t have to guess where the market is going, you just follow your plan.
If you asked me what the most important thing about trading is, the one thing that could be the difference between a successful trading and a trader who is still struggling to get consistent results, without a doubt, it’s having a trading plan.
Let me show you this chart:
If you like to trade ranges you are going to like this.
You know, sometimes we spent too much time trying to find the trend of the market, but most of the time, in fact, around 75% of the time the market is trading in a range.
So we need to trade them… Here is a good one in the CHFJPY:
By trading the news I don’t mean trying to guess what the first reaction of the market to the news announcement will be, because there is just no way of knowing this (and you know it). If you wanted to know this you would need to get inside every single trader head… it’s just impossible.
But if you wait a few minutes, see how the market reacts first, you might be able to take advantage of the second movement by following this advice.
And the best thing about this methodology, is that you don’t even need to know what the actual figure is, just do your homework (analysis), wait patiently, see how the market reacts, then make your move…
Both, the BOJ and the SNB have expressed their concern on the on-sided movements of their currencies (JPY and CHF respectively). Both of them are strong and these are the main reason why I think both of them are appreciating:
CHF: the CHF is being used as a reserve currency (debt crisis on some European countries, growth conditions, and others).
JPY: I have no clue, I don’t see a fundamental reason, but hey, the market is the market and if it’s appreciating it’s because the demand is increasing (from China perhaps?)
But which one do you think is stronger?
Answer: LOOK AT YOUR CHARTS… I’m kidding :)
Take a look at this chart:
Over time, looks like the CHF is stronger than the JPY, there is just small retracement after the SNB expressed their concern.
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Earlier this morning I wrote about the CHFJPY, for some reason this is the currency cross that I like the most, it has a clear condition, fundamentals are in line, we still have some room left before we reach the resistance level, etc.
To make this long story short, I just got my signal on the CHFJPY, it was rejected from the short term support level and looks like it will continue its way up:
Here are the details of my trade:
This trade has a risk-reward ratio of around 3:1
Since last week that the CHFJPY is trading in a clear bullish condition, in fact, most CHF crosses were in a bullish condition (CHF bullish), we’ll have to review each one of them and see if they are still tradable, but for now, I can tell you that the CHFJPY is still a good buy:
- It clearly broke through an important resistance level
- The next long term resistance level is still 280 pips from where the market is currently trading
It is currently trading at a short term level where it could give us a long signal. If I find a significant pattern with upward pressure just where it is trading right
now, I’ll go long.
As we mentioned on a previous post, its possible that CHF crosses are being used as a reserve currency, the CHF its going up against almost all its crosses, including the CHFJPY.
The CHFJPY its trading in a very clear bullish condition, what I like the most about this one is that the next long term resistance level is at 104.81, so there is a long way to go before we hit that level, giving us opportunities to get a good risk-reward ratio on the trade:
As long as the CHFJPY trades above 99.13 I’ll be looking for long opportunities.
The CHFJPY is trading in a clear bullish condition, despite the retracement it had 5 or 6 days ago, it wasn’t able to reach the support level and it looks like it will now resume its upward movements towards the next LT resistance level around 98.06:
As long as the CHFJPY keeps trading above 95.97 I’ll keep looking for long opportunities.
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Last week the CHFJPY was trading in a bullish market condition, I even tried to look for my entry in the short term charts but the trade failed… Still it was the right thing to do as I got my signal. This week, it is still in a bullish market condition. Its clear that in the LT charts it broke through an important resistance level and in the ST charts it is trading a clear range:
I’ll look for my entry around the ST support level.
A few days ago the CHFJPY broke through an important LT resistance level, triggering a bullish market condition. I was waiting for a retracement to the ST support level and finally got it. Earlier today the CHFJPY retraced back and formed a significant pattern with upward pressure:
Here are the details of my trade:
The risk reward ratio of this trade is 5.7:1