Welcome to another blog by AspireFX. Today, we’ll be looking at what happened with CHFJPY over the course of the week.
Looking back at the analysis done earlier in the week, we can see that this pair fell 130 pips once the retest of the trend line was confirmed illustrated above by the the highlighted region. Looking at the upward facing arrow we can see that price has created a lower low which means structure has been broken to the downside.
On the 1 hour chart above, we can see by looking at the highlighted eclipse that the reversal was confirmed when we had the 3 pin pattern to the upside as well as the massive bullish engulfing seen thereafter. Looking at the highlighted rectangle we can see that we’ve had a discreet inverse head and shoulder pattern which has pushed price up to the descending trend line. Look out for candle stick confirmation at this area for further downside movement as it also lines up well with the 78.6.
The reason we’ve seen such a strong push to the upside today is due to the growing concerns over the second wave of coronavirus in Japan. In terms of news events for the Yen, be on the lookout for the National Core CPI as well as the Services PMI which will be released next week.
Expect all JPY pairs to slow down slightly towards the end of the next week as they have national holidays on Thursday and Friday. Remember to always wait for candle stick confirmation before executing any trades and always use the correct risk management. Be sure to hit the follow button below to receive blog posts sent directly to your email.