CHF/JPY: Overbought 600 pips, targets 114.00's

Brian Twomey Brian's Investment

CHF/JPY achieved triple tops at 118.00's in 2016, 2017 and 2018 then dropped 1600 pips in 2016 and 1200 pips in 2018. Characteristically, CHF/ JPY is a a trend currency and not normally in our purview as margins are low and movements are slow. The 2018 drop to 106.00's lasted 4 months or 300 pips per month.

The broader analysis to CH/JPY is the ongoing drop from 157.00 highs in 2015 to 102.00 lows in 2016 or roughly 458 pips per month. Today's currency markets however are dealing with a much slower price speed from 2016 interest rate changes.

The last long term CHF/JPY trade and posted on FXstreet in 2018 was short 118.00's to target 112.00's. Trade duration was 3 weeks.

The same exact 600 pip trade is upon us however we're short from 120.00's, high 119.00's or anywhere to target 114.43. Vital to break lower begins at 117.79, 116.86, 115.87, 115.45 and 114.67. The main break is located at 117.79 then CHF/JPY gains speed to downside targets.

CHF/JPY's price above 118.00's doesn't exist therefore 600 pips of shorts are available until 114.00's trade.

CHF/JPY's price is found by USD/JPY divide by USD/CHF. CHF/JPY correlates to USD/JPY at + 88% and USD/CHF +44%.

The currency to view next is CAD/ZAR as the perfect opposite pair to EUR/USD.

GBP/CAD on going trade +92 pips and running. EUR/CAD from 1.4761 lows runs +77 pips.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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