Swiss Franc Looks For Support Vs. Japanese Yen
Christopher Lewis | Oct 04, 2018 11:31AM ET
In one of the most overlooked currency pairs, the CHF/JPY pair has pulled back rather drastically over the last several sessions. However, I think it’s a bit of a disservice traders due to themselves overlooking this pair. It’s essentially a battle between two safety currencies, and it can give you a heads up as to where you trade both of these currencies against other currencies. For example, if the Swiss franc is rallying against the Japanese yen, and the Euro is falling. It’s simple, you sell the EUR/CHF pair. Of course, the opposite is true. It’s a principle I use all the time called triangulation.
However, this is also a very stable pair as it is to relatively stable currencies. During the session on Thursday, we have fallen back towards the ¥114.50 level, an area that has seen a lot of clustering and a bullish flag as of late. Beyond that, the 50% Fibonacci retracement level is found at that region also. Because of this, I think the first signs of support on the short-term charts make an excellent trade featuring reasonable reward to risk ratio. For example, if I were to go long of this market I would anticipate a move all the way to the ¥118 level over the longer-term. However, if we break down below the ¥113.85 level, then it’s time to bail out.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.