CHFJPY - after the fall (and the gains!) it's time to LONG!

Back in December, we have signalled a short trade for CHFJPY and I can say that the trade went very well. In fact, the pair declined drastically from 113.83 to 108.

Today, I think that it is best to do the opposite by going long. Reasons below:

a) The pair has dropped massively and it is only natural that there is a retracement
b) The pair is now touching the lower far end of the Bolinger Band (purple lines) which normally suggest a price inversion.
c) The bolinger band (BB) is very wide which normally suggests a high price volatility – in this case we are now expecting a pullback.
d) The middle line of the BB (blue line which is a 20 MA) is touching the 200 MA (green) – it is expected that this acts as a support.
e) Stockhastic & RSI showing an oversold signal
f)  The Kimura trading ‘Sniper pattern’ showing an Engulfing pattern and an Inverted Hammer which suggest a change in trend.

What are your views on this?

 

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