- CHF/JPY has been in the hands of the bulls on a monthly breakout.
- The price, however, could be about to change hands on a restest of the monthly supply zone.
CHF/JPY has found support on the daily time frame which may act as a magnet on failures of the monthly supply zone. In doing so, this should give rise to a shorting opportunity with favourable probabilities.
The following is a top-down analysis from a market structure point of view and works its way into the prospects for the short side with entry from the mid-late 117 zones back in to test the mid-range target of the 116 area.
Monthly breakout
Weekly progress to the monthly supply zone
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As can be seen, the price took off following the completion of the reverse head and shoulders pattern.
Daily swing-trade downside prospects
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From a daily perspective, bears will be lining up for a failure at the supply zone for the possibility of a short trade back to the neckline of the W-formation.
