CHF/JPY FULL ANALYSIS: Bearish wedge and Fib on the way
Updated
TECHNICALS:
The CHFJPY pair faced some resistance at the upper line of a bearish wedge which also aligns with the 61.8% Fib and a horizontal resistance level. However, the 1-hour chart shows some short-term support levels which have to break first to confirm further weakness. We'll look for a break below 111.50.
POSITIONING:
Strong bullish flows in both CHF and JPY. Asset managers are slightly more bullish on JPY than on CHF.
MARKET THEMES: Favour a weaker CHFJPY as markets shift their focus to Japan's fresh monetary stimulus.
CORRELATIONS: Slight divergence with German/JP 2y yields (Note that CHF and EUR are highly correlated currencies).
The CHFJPY pair faced some resistance at the upper line of a bearish wedge which also aligns with the 61.8% Fib and a horizontal resistance level. However, the 1-hour chart shows some short-term support levels which have to break first to confirm further weakness. We'll look for a break below 111.50.
POSITIONING:
Strong bullish flows in both CHF and JPY. Asset managers are slightly more bullish on JPY than on CHF.
MARKET THEMES: Favour a weaker CHFJPY as markets shift their focus to Japan's fresh monetary stimulus.
CORRELATIONS: Slight divergence with German/JP 2y yields (Note that CHF and EUR are highly correlated currencies).
Note
Pair hasn't broken below our watched level, it's still not active.
Related publications
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.