Trader's Safe Haven

Hello, my friend! Today in our report we have a surprise guest. With all the complexities and imminent market threats, for traders, it remains a safe haven in the run-up to "great" events. Today we will talk about CHF/JPY.

We have chosen this asset because it will be less affected by the Brexit decision than other ones. Also, its behavior is quite easy to predict because most of the time it remains in sideway fluctuations.

The main feature of this asset is that it constantly very close to the balanced state and traders swing the market in sideways depending on supply and demand. The market fluctuations depend more on fundamental data and traders' expectations.

Picture 1. A CHF/JPY price chart from 26.02.2019 to 26.03.2019.

As we can see in picture 1, there is a sideway trend and the amplitude becomes narrower. From current market conditions, there is a chance of soon correction. The volumes remain in the normal range, however getting lower after the push to grow.

Now, let's check how big traders assess this asset. It definitely belongs to their market, where they set up the tough rules.

Picture 2. A price chart and the new index of big traders for CHF/JPY from 26.02.2019 to 26.03.2019.

As we can see in picture 2, the correction was caused by the changes in the number of positions that at this moment remain in a downward trend, and the price works out the pattern of a clear growth with a higher tendency to a correction.

So, based on all the information above we can assume that the best strategy for this asset now will be investing "lower".