I am going to take a few contrarian calls for the start of the week with short JPY’s. I am looking at the following pairs to start the week.
EUR/CHF: This remains my favorite pair and is offering a great risk-reward trade. It is very close to the SNB floor at 1.20 providing attractive long opportunities. We are already long but will be looking to add more with stops below 1.20 and targets of 1.238 and 1.25.
GBP/JPY: This pair is very close to its multi-year lows. I am expecting a bounce from current levels before a break below the all time lows to complete the downtrend. I am long 2 units from 117.5. Stops for 1 unit are below 117.2 and the other below 116.8. Targets are 119 and 120. Ignore this call if you are already long NZD/JPY.
USD/HKD: This is another pair that offers a good risk-reward trade. This pair is trading close to its long term support at 7.76. The RSI is showing divergence and has also broken above its declining trend line. I am looking to go long near 7.762 with stops below 7.760 and targets of 7.77 and 7.78.
Chart 1: EUR/CHF
Chart 2: GBP/JPY
Chart 3: USD/HKD
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