CHFJPY is an attractive SELL
This pair is trading in a clearly defined bearish channel, and the current price is close to the resistance trendline.
One warning sign in contrast to the overall bearish picture is perhaps today's (Thursday) rather bullish candle. However, since the price is still below resistance, the downtrend remains intact and additional bearish signals that appear here would be valid opportunities to enter short.
Also, be mindful of the CHFJPY usual price behavior of gradual trends with many retracements. That is, this pair often forms candles with large wicks on both ends even during trends. So, just because a bullish candle has appeared within a downtrend doesn't necessarily mean that the bulls are gaining control of the trend. Without a clear bullish breakout, the downtrend remains valid.
It's possible that CHFJPY could even pierce this trendline on an intraday basis (above 109.00). But, without a daily or rather even a weekly close above it, the trendline resistance will not be broken. Hence, such situations of the price moving above 109.00 could actually provide excellent selling opportunities.
Instances of higher volatility could occur on CHFJPY any US-China trade news or news related to Brexit and EU politics/economics. However, the overall theme that the JPY has more room to strengthen than CHF remains in place.
One warning sign in contrast to the overall bearish picture is perhaps today's (Thursday) rather bullish candle. However, since the price is still below resistance, the downtrend remains intact and additional bearish signals that appear here would be valid opportunities to enter short.
Also, be mindful of the CHFJPY usual price behavior of gradual trends with many retracements. That is, this pair often forms candles with large wicks on both ends even during trends. So, just because a bullish candle has appeared within a downtrend doesn't necessarily mean that the bulls are gaining control of the trend. Without a clear bullish breakout, the downtrend remains valid.
It's possible that CHFJPY could even pierce this trendline on an intraday basis (above 109.00). But, without a daily or rather even a weekly close above it, the trendline resistance will not be broken. Hence, such situations of the price moving above 109.00 could actually provide excellent selling opportunities.
Instances of higher volatility could occur on CHFJPY any US-China trade news or news related to Brexit and EU politics/economics. However, the overall theme that the JPY has more room to strengthen than CHF remains in place.
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