Canada cut interest rate yesterday and is still under a trade war with the USA. Which is bearish for the CAD. On the other hand, the yen has been attractive as investors seek risk off assets during this trade war. Also, the BOJ has been hawkish this year on interest rate.
Selling the CHF against a bullish JPY due to the following;
1. Little or no swap charges on the trade
2. The BOJ is more likely to continue to hike rates, which is bullish for the yen.
3. The SNB is more likely to continue to cut interest rates.
Price slightly missed my initial Daily long entry. So I bought at the retest of the 4hour support level.
FA: With Trump still positive on tariffs and inflation still a concern to the FED with FOMC decisions and Statements to be out soon the market expects hawkish statement from the FED chair today.... we could be surprised
Following the expected interest rate hike in Japan due to Inflationary concerns and the slow down in rate for the CHF. Together with the downward trend.
I took a sell at the retest of a broken resistance now turned support.
Following Trumps inauguration, President Trump didn't speak on his supposed tariff hike which caused the DXY to sink and the futures market to remind steady.
In anticipation to Trump 2.0 today and expecting the U.S president elect to re-afirm his position to raising tariffs which is inflationary and should cause the USD to rally.
Technically - price is retesting a support level after a pull back breaking a counter trend line.
