The CHF/JPY pair fell during the majority of the session on Wednesday, but bounced enough to form a hammer as the 115 level continues to offer a reactionary level to the market. The pair has found this area to be interesting over and over, and as a result I am not surprised to see the buyers step into the market in order to sell the Yen. The Yen is certainly on the back foot at the moment, and because of this I feel that even the lowly Swiss franc should continue to work its way higher against the Yen. The Bank of Japan continues to want a weaker yen, and as a result, I believe they will continue to work against the currency. The pair is the ultimate expression on where money is flowing as far as safety is concerned. The Swiss franc is also a safety currency as is the Yen, but it is obvious that more money is flowing to Switzerland than Japan. And that is the essence of what we are trying to figure out when we trade Forex.
The trend line on the chart that was broken as few sessions ago was in fact an important one, and I think that the pair should continue to go higher as this move suggested. The pair should continue on to the 117 level first, but I think it could be a bit of a slow move. The pair tends to do that after all, and there is a bit of noise above.
Uptrend will continue, as we build momentum.
The uptrend will continue in my opinion, as the pair seems to be reflecting more on the Yen than anything else. The pair will more than likely find its way to the 119 level given enough time. The pair will offer plenty of time to get in though, as the pullbacks will be often, and the pair simply doesn’t move that quickly. However, that is exactly what I like about this pair for the newer trader: It moves slow enough in order to take in all of the possibilities.
