By: John Ursus
Timeframe: W1
Recommendation: Short Position
Entry Zone: 112.00 – 113.00
Take Profit Zone: 102.50 – 103.50
Stop Loss Zone: 117.00 – 118.00
The CHFJPY has entered a sideways trend over the past ten trading months. This trend formed after a strong uptrend which lasted eighteen trading months. The rally took this currency pair from an intra-day low of 78.34 to an intra-day high of 119.16 from where the sideways trend started. This currency pair attempted to move higher two times which failed to materialize and set lower highs.
Forex traders should seek out short opportunities and split their order into several positions above and below the 1.1250 level in order to reduce risk for this trade. Any further upside from current levels should be taken as an entry opportunity into this recommended short trade as upside potential is currently rather limited while downside potential remains attractive.
