CHF/JPY Technical Analysis Summary
Buy Stop: Above 120.5
Stop Loss: Below 117.5
CHF/JPY Chart Analysis
CHF/JPY Technical Analysis
On the daily timeframe, CHFJPY: D1 approached the resistance line of the intermediate declining channel and the support line of the previous long-term uptrend. Before opening a position, the currency pair must exit this price channel and return to a long-term uptrend. A number of technical analysis indicators have formed signals for further growth. We do not exclude a bullish movement if CHFJPY rises above the last upper fractal: 120.5. This level can be used as an entry point. The initial risk limitation is possible below the 200-day moving average line, the Parabolic signal, the last lower fractal and the lower Bollinger line: 117.5. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (117.5) without activating the order (120.5), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Forex – CHF/JPY
Positive economic data came out in Switzerland. Will the CHFJPY quotes continue to rise?
An upward movement signifies the strengthening of the Swiss franc against the Japanese yen. Inflation in September 2021 for the second month in a row remained at the level of 0.9% in annual terms. This is the highest figure since November 2018. Rising inflation increases the likelihood of monetary tightening by the Swiss National Bank (SNB). Its next meeting will take place on December 16. The current rate is negative and equal to -0.75%. Retail sales rose 0.5% year-on-year in August after falling 2.6% in July. Last week, Swiss PMIs procure.ch Manufacturing PMI, KOF Leading and Economic Sentiment for September were better than expected. October 7 in Switzerland, there are significant data on the labor market for September. In turn, Japan last week released weak economic data on retail sales, manufacturing and Housing Starts for August. A lot of economic information will be published in Japan this week, which may affect the dynamics of the yen: inflation in Tokyo in September, indicators of economic activity Coincident Index and Leading Economic Index for August, as well as Eco Watchers Survey for September and others. In addition, a 10-year Japanese government bond (JGB) placement will take place on October 5 and a speech by the head of Bank of Japan (BoJ) on October 7. Note that investors expect BoJ to announce plans for an additional buyout of government bonds. This contributed to a noticeable decrease in their yield last week from a 4-month high.