CHFJPY - SHORT; A perfect hit!50 years in the making, this pair has done everything precisely by-the-numbers! - Technically speaking.
And while normally one ought to remain reluctant to trade "weak" against "weak" (in rate differential terms) ...
... but when one "weak" suddenly gains +45% versus the other on a newly found nevertheless, less than meager 1.75% rate differential ...
... It is time to pounce!
SELL - SHORT - As this pair lacks the fundamental as well as any technical reasons to deviate from it's rather predictable path - which is down from here.
p.s. This is a Quarterly chart, e.g., just how much of that likely 50,000 pips one will capture is dependent on whether this is traded with a Short Bias (with some frequency), from here on out, or simply used as a 401k plan - i.e., "just SELL it and forget it".
Here are the recent central bank rate differential changes;
Here is the CHFJPY Weekly Chart;
... with last week's healthy Reversal.
