CHFJPY - MASSIVE 1500+ PIP SWING! 🔥

A key part of technical analysis is to identify the different phases and patterns in the market.

So, what can we see?
- We can see that we're within a major ascending parallel channel and price has been respecting it. When price approaches either extremes of the channel, it rejects aggressively.
- There are 2 key phases at play here. The blue phase is the impulse and the red phase is the correction.
- The impulse phase is an upward movement and the corrective phase is a downward move

After identifying these phases, what next?
- So now that we know that the impulse phase ends at the upper limit of the channel, we know there's a corrective move coming back down to the channel support.
- If there's enough momentum, we can break the channel support and keep falling. As we're in an ascending channel , it is often a reversal pattern = there's a high chance that CHFJPY can come back down all the way to 109
- Now we need a trading plan to enter this trade

How do we trade it?
- The risk entry would have been at the rejection of the channel resistance - which we got into after our last analysis!
- We recently saw an impulse down and now we are within a correction. The entry we are now looking at is the break of the correction we're in for another move down. See below for trade idea.

Trade Idea:
- Watch for price to reject one of the fib levels indicated on the chart
- Risk entry would be rejection of the fib level. Safe entry would be after the break of the correction
- Put stops above the correction

First Target: Target the channel support for first targets (400pips)
Swing Target: The bottom of the channel (1,500pips)

See below for previous CHFJPY analysis:

What do you guys think? Leave your comments below!

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