Good morning team,
Looks like risk is entering back into the market due to next wave lockdowns. California has pushed back against the Trump administration ordering bars, restaurants and schools too close. It could be a matter of time before other states follow California as the virus continues to get out of control. Global stocks dropped last night and safe havens performed well.
Due to the technical set up the CHFJPY appears to be a good opportunity.
CHFJPY – Daily Charts
Bearish divergence on the RSI with a slightly higher high on the daily charts. The double top is also a major resistance zone.
CHFJPY – 1 hour Charts
There is potentially a head and shoulders formation in play. If we see a break at the neck line it opens the doors for the 1.27 and 1.618% FIB extensions.
Trade Set up: SELL Market execution, current price 113.85, stop loss 114.40 and take profit target left open to run but targeting 112.98-112.60.
Stop loss: 55 pips
Take profit: 87-125 pips