СHF/JPY

[Hamster]

Thread for СHF/JPY discussion - latest news, technical analysis, forecasts and opinions.

[zank haidar]

The CHFJPY currency pair's trade experienced a considerable drop after investors responded negatively to the dovish attitude of the ECB. Investors fled their funds away from the European Zone Region towards a more stable safe haven such as the Japanese Yen. Although Switzerland is not included in the European zone, but the country is quite dependent on the European Zone Region. The Swiss export economy base is the largest market share in the European Region. When the ECB dovish to raise interest rates and will continue its stimulus program, the Euro will weaken, this effect makes Swiss export goods "look" expensive which makes it difficult to absorb the market. The long-term effect of the Swiss macro economy will be a deficit because of reduced income.

Technically, the CHFJPY currency pair is currently trading drop and testing the sideways area. If you look at the stochastic indicator which is heading towards the oversold area, project if the price still has the potential to drop towards the lower line blue (109,514), and if the price holds below the trendline navy, then there is a chance to drop further.

[zank haidar]

Market conditions that are predominantly bearish provide a sell opportunity, especially from the Head and Shoulders pattern on H4 that awaits a confirmation break. On the Weekly chart, the dominance of bearish prices is indicated by a wave of Downtrends that still continues. The last top was formed at 118.25, and since then prices have weakened until now. Thus, the opportunity to sell is quite good because it is in line with the long-term trend.