CHFJPY is opening a further downside
In this article, we are drawing Pitchfork channels on CHFJPY
On the monthly CHFJPY chart, we can see that the pair is in the downside extension into the 100 level after another rejection from a 115 level
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first, look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets indicated below.
On the Daily chart, the pair formed a downtrend Pitchfork channel and we have a rejection again from the key 112 level. The resistance, 110.400, is the only one left before a hard downside extension into the median line 108 level. By a trading perspective, look for the short trade entries with the stop loss above the 110.400 level targeting 108 level first, and in a case of a daily close below this level look for the extreme extension lower into the 105 level. Downside invalidation will come on a stop loss trigger and a daily close above the 110.400 level.
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