The chart provided is a 4-hour (H4) timeframe for the CHF/JPY currency pair. Below is a detailed analysis based on the chart:
Key Levels:
Buy Stop: 176.490
Take Profit (TP): 176.855
Stop Loss (SL): 175.958
Trend Analysis:
The pair is in an uptrend, as indicated by the higher highs and higher lows.
The price is trading above both the 50-period moving average (yellow) and the 200-period moving average (red), which confirms bullish momentum.
Moving Averages:
The 50-period moving average is above the 200-period moving average, forming a golden cross, which is a strong bullish signal.
The price is currently bouncing off the 50-period moving average, suggesting it is acting as dynamic support.
Price Action:
The price has recently broken above a resistance level near 176.290 and is now consolidating just below the Buy Stop level of 176.490.
The bullish momentum suggests a potential breakout above 176.490, targeting the TP level at 176.855.
Risk Management:
The Stop Loss is set at 175.958, which is below the recent swing low and provides a reasonable buffer against market volatility.
The risk-to-reward ratio is favorable, with the potential reward (365 pips) being higher than the risk (532 pips).
Trading Plan
Entry: Place a Buy Stop order at 176.490 to capitalize on a breakout above the current resistance.
Target: Take Profit at 176.855, which aligns with the next resistance level.
Stop Loss: Set at 175.958 to limit downside risk.
Market Sentiment
The bullish trend and the golden cross indicate strong buying interest in CHF/JPY.
However, traders should monitor for any signs of reversal or consolidation near the resistance level.
Conclusion
The CHF/JPY pair is showing strong bullish momentum, supported by technical indicators and price action. A breakout above 176.490 could lead to further upside toward the TP level at 176.855. Proper risk management is essential to protect against unexpected market movements.
Recommended Lot Size
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