Hi Guys, Good morning!! I am stalking CHFJPY for a sell for today. My thoughts: Swiss could be in a for short term bearish move with the Retail Sales economic indicator due to come out 6:30GMT today. We already have a bearish consensus on both ForexFactory and FXStreet economic calendars suggesting that we could be in for a short term weak CHF. Possible entry area for the sell could be 107.750 Possible target area could be at the 108.000 Fundamentals to keep an eye out are Consumer confidence and Housing Starts for Japan. For Swiss economy the major indicator is the Retail Sales. Short Video:
Hey guys, this was a nice trade setup.. with a nice risk to reward. Did a short video on the post trade analysis.
Since I don't trade currencies, please explain. if I buy chf/jpy at 107.75 then it goes to 108, doesn't it mean I am making a profit? your post says the opposite. What am I missing? Thanks.
Hey sorry yeah my bad.. the post should read Entry area as 108.700 and the target area as 108.000. So on this pair we are selling to make a profit. Thanks for spotting the error!!
Also zdreg... with the above scenario you mentioned .. you buy low at 107.75 and then it goes to 108 then you have a better price so you make a profit. In Forex you can do both ways.. You can also sell a currency pair and make a profit. So you sell at 108 and wait for the markets to reach 107.75 which is a lower price and you have made a profit in this market movement. Hope this is the answer to your question and hope it makes sense... let me know if it doesn't.. can explain further..
It is analogous to going short stock. It is surprising that nobody else caught the initial error. I will keep you in mind if I need info. on forex trading.
I would say that CHF/JPY is more dependent on Yen demand as a safe heaven asset. Economic situation in Switzerland plays minor role in the pair's movement.