Bearish Divergence On CHFJPY
FХ Strategist & Financial Commentator
While during Friday’s session this pair has started a bearish acceleration towards 114.50, followed by a prompt bounce around 115.20 where we can detect the weekly closure.
The Average True Range on his hand is pretty stable on the last weeks, even though it’s still higher than the 2019 average values and this element makes this pair really interesting for a short term trading, as at this moment of time is one of the most active in the Forex market.
Looking at the RSI indicator, we can detect a new bearish signal, with a 4 pivot points bearish divergence and a progressive loss of strength throughout the last 2 months, that should anticipate a technical correction at least with a short term outlook.
The setup would be activated in case of a breakdown of the Friday bottom around 114.40 area. The stop loss must be placed at 115.80 above last week’s top, while the target price can be expected at 113.00 around this month bottom zone.
As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.