CHF/JPY Analysis: Potential Reversal Setup
Updated
In this chart, I'm analyzing a potential bullish reversal in the CHF/JPY pair after a downward trend. The price has been moving within a descending channel, with lower highs and lower lows, indicating a bearish sentiment. However, it recently hit a strong demand zone between 174.100 and 174.200, where buyers seem to have stepped in, pushing the price upward.
Technical Observations:
Breakout of Descending Channel: The price has broken out of the descending channel, which could signal a reversal of the downtrend.
Demand Zone Support: The green zones between 174.100 and 174.400 acted as support, creating a base for buyers to initiate an upward movement.
Target Levels: If the breakout is sustained, my first target is around the 174.685 level, with a secondary target at 174.920, and 175.160 as final target which aligns with previous resistance levels.
Stop-Loss: I've set my stop-loss below the demand zone at 174.093 to protect against potential downside risk if the breakout fails and price re-enters the channel.
Trading Plan: I'm looking for a potential long position here, with the breakout from the channel acting as a confirmation for a bullish move. Watching for strong buying momentum to sustain, I’ll look to manage the trade carefully with a close eye on any signs of reversal back into the channel.
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Trading involves significant risk, and you should always conduct your own research and consult with a professional financial advisor before making any investment decisions. Past performance is not indicative of future results. Trade responsibly.
Technical Observations:
Breakout of Descending Channel: The price has broken out of the descending channel, which could signal a reversal of the downtrend.
Demand Zone Support: The green zones between 174.100 and 174.400 acted as support, creating a base for buyers to initiate an upward movement.
Target Levels: If the breakout is sustained, my first target is around the 174.685 level, with a secondary target at 174.920, and 175.160 as final target which aligns with previous resistance levels.
Stop-Loss: I've set my stop-loss below the demand zone at 174.093 to protect against potential downside risk if the breakout fails and price re-enters the channel.
Trading Plan: I'm looking for a potential long position here, with the breakout from the channel acting as a confirmation for a bullish move. Watching for strong buying momentum to sustain, I’ll look to manage the trade carefully with a close eye on any signs of reversal back into the channel.
Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Trading involves significant risk, and you should always conduct your own research and consult with a professional financial advisor before making any investment decisions. Past performance is not indicative of future results. Trade responsibly.
Trade closed: target reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.