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Chart of the Day: CHF/JPY

Thursday, 27 November 2008 05:26:20 GMT

Written by Thomas Long, Power Course Instructor

Another currency pair worth looking at for a potential selling opportunity is the CHF/JPY.

11-27 chfjpy

It appears that last week's 100 basis point rate cut by the Swiss Central Bank has resulted in a weak Swiss Franc. The CHF/JPY is in a downtrend and rallied up to the 81.60 area before finding resistance. After entering into a sell, traders should place their stop above that resistance and look for twice that risk in profit potential for the 1:2 risk:reward ratio.

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