CHFJPY: Two Potential Scenarios

hey traders,

in trading most of the time we deal with uncertainty.
we embrace the chaos and by the means of technical analysis, we are trying to establish the order.

even with the application of technical tools, most of the time the picture is vague,
and being a trader, we are looking for clues that shed light on the future outcome.

one of the most important signals that we apply is a breakout.
breakout breaks the current order and shifts the market to the new phase showing as a dramatic change.


very good example of that is on CHFJPY.

from a bearish perspective, the market is trading in a bearish trend
and the price is currently consolidating, going up and respecting the boundaries of the rising channel.

being broken to the downside, it breaks the current order within the channel, and we will most likely see the retest of the current low.
target levels will be: 112.13 / 111.8


from a bullish perspective,
112.0 is key daily support,
112.5 resistance is the last resort for sellers,
if sellers show their unwillingness to sell from this level,
bulls will break it to the upside, breaking current (bearish) order, and bets will be high that the market will go up at least to 113.0 level.


for us, it is not crucially important to which side the market breaks.
what we do, we just react to the change.
doing that, we will always have an edge over the market.


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