The Yen basket has hit resistance resulting in CHF/JPY moving to the upside. There is no clear indication of a change in the trend of the Swiss franc.
Looking at the cross, it is analyzed to be forming a cypher pattern known as a Bat formation. This will complete at 151.30. The Bat has an inside Elliott wave formation ending at the 261.8% extension level. It must line up with the 88.6% pullback level of the last decline.
We have seen various bullish reversal candles from close to the swing low. This offers an immediate upward bias.
We have tried to execute the trade as close to the previous swing high as possible. What was resistance, now becomes support (at 150.20).
Although the risk-reward factor is only 1:43R this is a favorable setup.
