Trade of The Day – CHF/JPY

• CHFJPY reversed from the key resistance level at 199.66
• The pair has been trading in a downtrend since June 17

Trade Recommendation Trade:

Open a short position on CHFJPY at the current market price.

• Target 1: 198.45
• Target 2: 198.10
• Stop Loss: 199.92

Analysis

CHFJPY has remained in a downtrend in recent sessions. On the H1 chart , the pair staged a local bullish correction, but buyers failed to break above the key 199.66 resistance , which is defined by the upper boundary of the 1:1 Overbalance structure and the 100-period moving average . According to the Overbalance methodology , as long as the price remains below this resistance level, the prevailing market sentiment stays bearish. With this in mind, further downside in CHFJPY appears likely. We recommend opening a short position at the current market price, targeting 198.45 and 198.10 , with a stop loss at 199.92 .

Source: xStation 5