Day four: short CHF/JPY trade idea

As you can see from the hourly chart, CHF/JPY is moving in the right direction for the trade idea.

The pair fell to a low of 114.32, thus I feel moving stops to 115.70 seems prudent. My proposed entry was 115.10, so I will be hoping to move stops to break-even soon.

On the hourly and daily chart the stochastic indicator is firmly below 20, although a move back above this level could suggest some short covering, however it appears a new trend is developing to the downside.

The sell-off in US equities is helping the trade as well, so downside moves in are not just a reflection of increased ECB expectations.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.