CHFJPY - Bearish correction into a new bull trend
Updated
CHFJPY has made an impressive move to reach the 113 level in a short period. However, this pair is due for a correction.
With price rejecting this resistance level and bullish pressure easing over the last couple days, this is likely to be the start of a good sized correction/retracement before price continues higher. The red rectangle depicts the projected retracement area where price is likely to continue upward. This will act as the profit target if a short trade is triggered.
For a valid short setup the following criteria should be met:
If these criteria are met, a pending order will be placed a few pips below the new low posted tomorrow. SL should be placed safely above the identified resistance area.
With price rejecting this resistance level and bullish pressure easing over the last couple days, this is likely to be the start of a good sized correction/retracement before price continues higher. The red rectangle depicts the projected retracement area where price is likely to continue upward. This will act as the profit target if a short trade is triggered.
For a valid short setup the following criteria should be met:
- Today's heiken ashi candle should be red and have little to no upper wick.
- Price should extend lower than yesterday's low.
- AC oscillator should remain red and close less than 0.
- The fast Laguerre should break lower (Ideally, it should close below 0.85). *optional but would be a nice confirmation*
If these criteria are met, a pending order will be placed a few pips below the new low posted tomorrow. SL should be placed safely above the identified resistance area.
Note
Price moved higher today and has invalidated this setup. Perhaps a price will suggest a new setup next week.Order cancelled
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