The CHF/JPY pair is one that I love trading. It’s because it’s more or less a “slow-motion” type of trade, thereby is a very low stress. As you can see by the weekly chart, we have been in a nice uptrend for some time, just as we have been with most JPY-related pairs. This pair is a little bit different though, in the sense that it is a measure of two funding currencies, and therefore can be used to analyze several different pairs as well. However, in this particular pair I look at it as a type of investment, as the appreciation is so steady and predictable at times.
Now that we are approaching this trend line that is drawn on this weekly chart, I believe that we should see appreciation of the Swiss franc against the Japanese yen. With that, I believe it shows that we should see Japanese yen weakness overall, so as I mentioned above, we could be looking at going long JPY-related pairs. On top of that, this may be a nice investment as the slow grind should bring guests back to the 117 region by the end of the month.
Learn to leave it alone.
If you are the type of trader that simply has to be involved with a trade at all times, and is one who likes to click buttons a lot, this is not going to be the pair for you. However, if you have the ability to put a trade on and hang onto it for months on end, this one is going to be great. On the other hand, if we drift through this trend line, I wouldn’t necessarily be a seller, but I would recognize that the market could very well become “dead money.”
That is a real threat though, simply because we are heading into the slowest time of the year. Ultimately though, I think the trend is well-established in this pair, so really comes down to whether or not you have the patience necessary to hang onto this particular position. Selling for me simply is not an option.
