CHFJPY | Perspective for the new week | Follow-up detailsWith over 60pips in our direction since my last publication on this pair (see link below for reference purposes), I am expecting that the retracement phase will push into a 50, 61.8 or 78.6% retracement before the trend continuation begins. So, if you are not in the bearish train you still have a minimum of 150pips to catch before the buyers find a good price!
Tendency: Uptrend (Bullish)
Structure: Breakout | Supply & Demand | Trendline | Retracement | Harmonic move (AB=CD) expectations
Observation: i. This is going to be a follow up on my last speculation on this pair as it appears that the retracement of the Impulse leg identified as finally taken course and we are looking at the Key level (JY121.000) area for reversal set-ups.
ii. The visual representation of a line drawn under pivot lows on the weekly chart reveals the prevailing direction and speed of price action since September 2019.
iii. And after considering the long term bullish perspective in this market, it is appropriate that we remain a little more patient for buying opportunity after the exhaustion of the correction phase after which we can look forward to a possible harmonic move (AB = CD pattern) with parameters explained below;
a. Impulse A-to-B is expected to be in harmony with the potential C-to-D leg.
b. The B- to-C leg is expected to fall within 50 to 78.6% Fibonacci retracement of the A-to-B leg.
c. The C-to-D leg is expected to fall within 127.2 - 1.414% Fib. ext . of the A-to-B @ JY128.000 area..
iv. So, while we wait for buying opportunity; the counter-trend in the guise of a retracement could be a risk worth taking (see link below for my previous analysis supporting a bearish bias)... Trade consciously!😊
Trading plan: BUY confirmation with a minimum potential profit of 500 pips.
Risk/Reward : 1:5
Potential Duration: 10 to 20days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
