CHFJPY has broken out of its 4H downtrend, where it was making a sequence of lower lows and lower highs. We have impulsively broken through that trend, creating a new high, invalidating the bearish sequence.
Price is now retracing into the key fib retracement zones (golden pocket). I will be looking for a rejection from 0.71 fib retracement as this lines up perfectly with the psychological zone of 109.00 as well as previous market structure.
However, i will also be watching price around the 0.618 fib retracement for a slow down in price with some bullish price action to confirm the upside move.
I do favour some more downside into 109.00 though. This would provide a better RR trade. TP levels would be the 27 and 61.8 fib extension levels.
Price is now retracing into the key fib retracement zones (golden pocket). I will be looking for a rejection from 0.71 fib retracement as this lines up perfectly with the psychological zone of 109.00 as well as previous market structure.
However, i will also be watching price around the 0.618 fib retracement for a slow down in price with some bullish price action to confirm the upside move.
I do favour some more downside into 109.00 though. This would provide a better RR trade. TP levels would be the 27 and 61.8 fib extension levels.