CHFJPY 1D Short Position Ascending Channel Resistance Bounce
CHFJPY has been trading in an ascending channel for the past few days and is approaching channel resistance. Bearish oscillator divergence (higher high, lower high) makes me believe that the pair will bounce off channel resistance and continue downward past channel support.
I plan on going short on a bearish engulfing candle off the channel resistance/horizontal resistance level at 115.250 with a stop loss at 116.800 and a first profit target of channel support at 116.700. If price action continues moving lower, I will hold a partial position and scale into my position at the break of 113.00 to catch further downward momentum.
I plan on going short on a bearish engulfing candle off the channel resistance/horizontal resistance level at 115.250 with a stop loss at 116.800 and a first profit target of channel support at 116.700. If price action continues moving lower, I will hold a partial position and scale into my position at the break of 113.00 to catch further downward momentum.