Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

CHF/JPY Forecast: Franc Strong Against Yen

  • The Swiss franc fell rather hard against the Japanese yen during early trading on Wednesday but has seen a little bit of a push back near the ¥171.50 level.
  • An area that previously had been pretty significant resistance.
  • With that being the case, we have a little bit of a decision to make here at this point.

I still believe that you are buying pretty much anything against the Japanese yen, and that even includes the lowly Swiss franc. If we break down below the ¥171.50 level, then I think the 50 day EMA could be your next major support level. And then after that, the ¥167 level, which is now attracting the 200 day EMA. Regardless, I think you are looking to buy dips.

Now the question is whether or not the ¥171.50 level has offered that support that you can buy into, or if we need to reset. As things stand right now, the bounce has been somewhat muted. So we'll have to wait and see. The ¥172.60 level above is a short term barrier that will try to get above, and if we do, then I think it opens up a move to the ¥175 level.

Top Forex Brokers

    Keep in mind that the Bank of Japan has recently intervened, but that's about the only thing that stopped the selling of the Japanese yen and the appreciation of all of these other currencies against it. The signs of the candlestick on Wednesday, of course, is somewhat telling. But really, when you look at the longer term trend, it's been a blip on the radar.

    I Remain Bullish

    CHF/JPY Forecast Today 16/5: Franc Strong (graph)

    So therefore, I remain bullish, especially considering that you get paid at the end of the day to hold this pair, even though it's not that much. As long as the Bank of Japan is stuck with keeping monetary policy extraordinarily loose, even the lowly Swiss franc will probably continue to make moves against the Japanese yen. With this being the case, I tend to use this chart as an idea as to which funding currency I want to use in other trades, but the pair itself should continue to rise also.

    Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out. 

    Christopher Lewis
    About Christopher Lewis

    Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

     

    Most Visited Forex Broker Reviews