CHFJPY – Daily Timeframe (D1) Technical & Fundamental Analysis
On the daily timeframe, CHFJPY is currently in a consolidation phase, creating uncertainty in the market following a strong uptrend over the past few weeks. During this period of consolidation, we have identified several key levels that could potentially influence the market direction in the coming days.
The major key support level is at 166.600, which serves as a crucial area of interest. If price breaks below this level, it could signal a potential shift in market direction and trigger further downside movement.
Within the consolidation range, we also identified minor key levels near the current price:
171.200 – considered our minor key support
172.700 – considered our minor key resistance
Our strategy focuses on the current liquidity zone. Since price is moving within this range, we are waiting for a clear formation of liquidity. If this occurs, we anticipate a breakout above the resistance level and will place a Buy Stop entry at 172.870, with:
Stop Loss (SL) at 171.430, below the liquidity zone
Take Profit (TP) at 176.460, targeting the next minor resistance level
Fundamental Insights:
Fundamentals Supporting the Swiss Franc (CHF):
Strong Economic Data: If Switzerland releases stronger-than-expected economic growth, higher inflation figures, or positive employment data, this could increase investor confidence in the Swiss Franc and drive its value higher against the Yen.
Safe-Haven Demand: The Swiss Franc is widely recognized as a safe-haven currency. During periods of global uncertainty or financial market volatility, investors typically seek the CHF for stability. Increased global risk sentiment could push CHF higher versus JPY.
Fundamentals Pressuring the Japanese Yen (JPY):
Low Interest Rates & Dovish Monetary Policy: The Japanese Yen continues to face pressure due to Japan’s long-standing ultra-loose monetary policy, including low or negative interest rates and the Bank of Japan’s ongoing asset purchase program. Without significant policy tightening, the Yen is likely to remain weak.
Economic Headwinds: Any signs of slowing economic growth in Japan—such as disappointing GDP data, rising unemployment, or persistently low inflation—could further weaken the JPY, enhancing the bullish case for CHFJPY.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
On the daily timeframe, CHFJPY is currently in a consolidation phase, creating uncertainty in the market following a strong uptrend over the past few weeks. During this period of consolidation, we have identified several key levels that could potentially influence the market direction in the coming days.
The major key support level is at 166.600, which serves as a crucial area of interest. If price breaks below this level, it could signal a potential shift in market direction and trigger further downside movement.
Within the consolidation range, we also identified minor key levels near the current price:
171.200 – considered our minor key support
172.700 – considered our minor key resistance
Our strategy focuses on the current liquidity zone. Since price is moving within this range, we are waiting for a clear formation of liquidity. If this occurs, we anticipate a breakout above the resistance level and will place a Buy Stop entry at 172.870, with:
Stop Loss (SL) at 171.430, below the liquidity zone
Take Profit (TP) at 176.460, targeting the next minor resistance level
Fundamental Insights:
Fundamentals Supporting the Swiss Franc (CHF):
Strong Economic Data: If Switzerland releases stronger-than-expected economic growth, higher inflation figures, or positive employment data, this could increase investor confidence in the Swiss Franc and drive its value higher against the Yen.
Safe-Haven Demand: The Swiss Franc is widely recognized as a safe-haven currency. During periods of global uncertainty or financial market volatility, investors typically seek the CHF for stability. Increased global risk sentiment could push CHF higher versus JPY.
Fundamentals Pressuring the Japanese Yen (JPY):
Low Interest Rates & Dovish Monetary Policy: The Japanese Yen continues to face pressure due to Japan’s long-standing ultra-loose monetary policy, including low or negative interest rates and the Bank of Japan’s ongoing asset purchase program. Without significant policy tightening, the Yen is likely to remain weak.
Economic Headwinds: Any signs of slowing economic growth in Japan—such as disappointing GDP data, rising unemployment, or persistently low inflation—could further weaken the JPY, enhancing the bullish case for CHFJPY.
📌 Disclaimer:
This is not financial advice. As always, wait for proper confirmation before executing trades. Manage your risk wisely and trade what you see, not what you feel.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.