The Swiss Franc was the strongest currency of last week, and the Japanese Yen was the weakest, showing a strong uptrend for the CHFJPY pair. Will this trend continue? And will it find support?
Watch the video to learn more…
Today we’re going to take a quick look at a key currency pair of CHF/JPY, with the potential of becoming the trending pair of the week.
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We’re going to look at CHF/JPY because the Swiss Franc is at +5; it has been trending upwards. We’re also looking at the JP Yen because it is at -5 and has been trending downwards.
The currency strength meter shows us that the Swiss Franc is the strongest currency and the Japanese Yen as the weakest currency, highlighting a strong uptrend on the CHF/JPY pair. Could this offer a long opportunity for us in line with the current trend?
We have a strong currency against the weak one, which is causing the uptrend.
If we’re going to look at where the uptrend began and when it crossed over, we’re looking at the 22nd of March. Since then, the price has been trending to the upside.
If it goes to the daily, you can see that the price has been moving higher. I’m looking for that trend to continue and to buy on potential trend opportunities.
Before I look at where I want to buy from, I want to look at where the price may head first.
In the weekly timeframe, the price found some resistance here in the past, around 122.90 or 123.
If the trend continues, then we need to identify the resistance that the price could target. Back in November 2015, the price found a high at 123.00, which could be tested if the trend continues.
We had some strong selling activity back in November 2015. So, CHF/JPY is definitely on the rise. This could be an area that the market may retest before seeing either a pullback or a continuation of the overall trend.
At the moment, the Swiss Franc is stronger than the JP Yen, so you want to be a buyer in this market.
I want to identify an area in the daily timeframe where I’d want to buy from. If we look at the previous structure levels, we have a nice shallow retracement there. That is where the buyers stepped back in the market.
This makes me want to be a buyer if the price can go back down to this point because institutions have been buying from this area.
The daily timeframe shows us that the price has been making higher highs and higher lows. Looking at the previous retracement phase, the high volume level rests at 119.72. If the price retests this level, then we could see a continuation of the uptrend.
We’re getting strong bullish candlesticks from the key price at 119.72. This is also the most traded level within this zone, so that’s where I want to buy the market.
If you see the price going back to this level, put an alert and see how the price reacts. If the price gives you a nice bullish reaction from this zone, then we could be looking for further long opportunities in line with the trend.
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