Hi Traders! CHFJPY forecast update and follow up is here. On September 29th I shared this “CHFJPY Forecast” in Trading View. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea:
Yesterday I shared a follow-up post “CHFJPY Forecast Update And Follow Up” about this idea and I mentioned the following. My short view is bullish here and I am expecting the price to move higher towards the strong resistance zone. After the first move to the upside currently it looks like a correction is happening and the price has reached a strong support zone. There are no evidences of a trend change at the moment. So until this strong support zone holds I expect the price to move higher towards the strong resistance zone shown in the screenshot below.
You can see this clearly on the H4 chart below:
CHFJPY H4(4 Hours) Chart Current Scenario
The price respected the support zone and there were no contradictory signs. The price then moved higher exactly as I expected it to and delivered around 80+ pips move. Currently, the price has reached the strong resistance zone and also we have bearish divergence that has formed on both H4 and H1 timeframes based on the MACD indicator. This is something that we need to pay attention to. So if you are still involved in the buys then this is a good place to consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
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You can see this move clearly and bearish divergence on the H1 chart below:
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
