Buyers took back control of CHF/JPY in the last couple of weeks, enough to push the pair to my adjusted stop and close my trade out for a profit. Here’s a quick review.
Consolidation Breakout on CHF/JPY?
Back in mid-April, I shorted CHF/JPY at market (110.21) after a wedge breakdown to play my fundamental bias of the Swiss franc likely trading with the euro lower on weakening economic data. The pair did find momentum lower and after a weekly ATR move, I decided to lock in a profit by rolling down my stop to 109.15 as the move seemed over extended.
It looks like the pair did run out of sellers around the 109.00 handle, likely on a combination of improved euro area data and possibly continued rhetoric from the Swiss National Bank that they’re willing to intervene if the franc continues to rise in value. Whatever the case may be for the Swiss franc’s strength over pretty strong yen, the pair did trade up to my adjusted stop at 109.15 earlier this week to close out my position for a small gain.
Total: +106 pips / +0.53% gain on 1.00% risk
Overall, I’m still short biased on this pair as the sentiment on each currency hasn’t really changed over the past month, and I’m looking for an opportunity to jump in if the market continues to find resistance in this area between 109.50 – 110.00.
Stay tuned for that potential move and other new potential ideas coming soon…and as always, good luck and good trading!
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