FX Market Analysis – CHFJPY

*Live market analysis of the CHFJPY FX currency pair!*

Here is another blog post with my live, pre trade technical analysis on the Swiss franc vs Japanese yen FX currency pair. I have been waiting for a suitable set up on this currency pair for quite a while now since it made a nice bearish move down from the yearly highs back in April.

As always, my technical analysis is done using the fantastic TradingView platform and I do highly recommend it. It has everything you need from a charting software.

Visit https://tradingview.go2cloud.org/SH3bP to sign up, you may be eligible for a discount on the pro account.

Price has since made a pullback from the yearly lows at the 107.610 region and this is where my long trade set up came in to action. The chart below shows the last 6 months of price action on the daily timeframe chart.

CHFJPY daily timeframe chart

What I am looking at is the current daily timeframe trend. As I have explained in previous blog posts, the best trades are the simplest trades that follow the prevailing trend. I have the current trend and swing points marked on the chart below which will show you why I have entered long positions on the CHFJPY FX currency pair.

CHFJPY daily timeframe chart
(with trend mark up)

Price has now made consecutive higher highs and higher lows after bouncing from the yearly lows. This shows that there is a reasonable chance that this new bullish trend will continue on this timeframe and buying the higher lows will lead to profitable trade positions.

On the chart below I have added a simple trendline joining the the 2 previous lows to show potential zones where price can bounce from the trendline in the future. As you can see, price has reacted at this TL. I have also drawn on the fibonacci retracement tool on the previous swing high and swing low of this trend to show where the next potential reversal may appear. The trendline and 0.786 fib retracement level overlap nicely so this is a strong potential support zone and price has bounced from this zone with a nice 4hr bullish candle close.

CHFJPY 4 hour timeframe chart

The yellow circle shows the overlap of all the confluences. This is the target area for me entering a long position. It allows for a reasonable size stop loss of 30 pips to sit below the current candle wick lows and a target profit set at the fibonacci -0.27 extension level produces a trade with a R:R ratio of over 6:1.

CHFJPY 4 hour timeframe chart
(With long position marked on)

The chart above shows my long position marked on the chart and how price tested the trendline and fibonacci level zone before bouncing and beginning its climb to new daily highs.

You can track this trade live on my TradingView profile by clicking on the link below. I posted the analysis before I took the trade so you can all follow its success (or failure).


The key lessons from this technical analysis are; keep it simple, trade with the trend and gain multiple confluences to increase your probability of success.

Thanks for reading and please remember to LIKE, SHARE and FOLLOW my blog to stay up to date with latest blog posts and analysis.

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