CHF/JPY Short Play In Action – IN PLAY!

CHF/JPY Desired reward to risk ratio – This trade is happening now! 

These safe haven pair offs can generally run quite quickly. Keep your stops fixed and if triggered, look to re-enter with further confirmation whether it be candlestick reversal or 5 minute time frame trend line cross. The CHF/JPY is a super nice trending pair.

CHF/JPY
Key Points:

  • Price holding below the 200 EMA
  • Attempt to break 50 EMA
  • 61.8% Fibonacci retracement of current range
  • RSI could break trend and range simultaneously for momentum
  • Desired Reward to Risk ratio

 
Key Levels:
Support – 115.185, 115.400, 114.625, 50 EMA
Resistance – 114.62, 115.580, 115.700, 200 EMA
 
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 115.640
Supporting Entry – 115.580
 
Candle Reversals for entry

  • Bearish Shooting Star
  • Bearish Engulfing
  • Bearish Dark Cloud Cover

 
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
 
IF: Price breaks above 115.700 level, and violates – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
 
Reward / Reward Targets:
Optimal Entry 115.640 – Target 1 115.580 = 4x Reward to Risk
Optimal Entry 115.640 – Target 2 114.62 = 8x Reward to Risk
Supporting Entry 115.580 – Target 1 115.580 = 2x Reward to Risk
Supporting Entry 115.580 – Target 2 114.62 = 5x Reward to Risk

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