CHFJPY 4 HOUR BREAK AND RETEST TRADE SETUP

Hi everyone:

Here is my view on CHFJPY SHORT, any feedback is greatly appreciated it. Thank you

Trade: #14
Date: 12/26/2016
Time: 00:00 GMT
Forex Pair/Commodity: CHFJPY
Position: SHORT (SELL)
Reward/Risk: 3:1

After an over extended run to the upside, price has finally broken down the support trend line @ the 4 HR chart, potential reversal of the trend. Since daily chart is also over extended to the upside for more than 1 and ½ months now, , this is a good opportunity to short as the daily chart also broke down a strong support trend line. Looking to target the daily 20 EMA, roughly 113.30 for a 3:1 reward/risk ratio trade setup.


Daily: Over extended to the upside since the U.S. election, now has finally broken down the support trend line, and looking for a pull back play to 20 EMA
4 Hour: Break down both the 20 and 50 EMA, now retracing at 50 EMA, main pivot point, 0.382 fibs retracement
1 Hour: Short term trend line is broken down, price has fully retraced @ 20 EMA area.

Thank you for your support

Comment:

Here are the DAILY and 1 HR Charts:

Trade closed manually:

Break Even. 1 HR chart did drop down, but bounced up to break above the 50 EMA, and a bullish MACD has come in. Manually exit the trade for break even.

Date: 12/27/2016

Time: 23:00 GMT