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19 Sep 2013
CHF/JPY soars as taper “off” leads to risk “on”
FXstreet.com (Athens)- The CHF/JPY enjoyed a very bullish uptrend momentum, as the Japanese currency -after FOMC decision to keep on QE3- was deeply sank across the board.
Risk on prevails after traders caught off guard on FOMC decision; CHF/JPY up
The CHF/JPY continues to set up its upward trend momentum since the 16th of September. Taken for granted that we are ahead of a very light Asian week end, as Chinese markets are closed on both Thursday and Friday due to the mid-Autumn festival (the Hong Kong Stock Exchange is shut on Friday only), we should pay significant focus on today SNB’s minutes. The yesterday’s Swiss ZEW data came strong enough, though slightly weaker than expected. It is noteworthy though, that the ZEW data in Switzerland has been releasing at improved levels since the January of 2013, apart from August. Today we are ahead of very crucial data regarding the “Swissie”. The SNB will announce its rate decision which is expected not to change at all, but the real markets movers are the SECO data. Elaborating on, just a bit earlier the trade balance of Switzerland for August narrowed to +1.85B versus +1.80B expected. What’s more, the Swiss Government upgraded 2014 GDP outlook to 2.3% versus 2.1% forecast in June. Needless to say, it seems that the Swiss franc could take advantage with important event risk of its own. With financial stability proving more convincing, it’s probable that the pair will move higher.
Technical outlook on CHF/JPY
With the market still sensitive to fundamentals following Wednesday’s volatility, the “Swissie” takes absolute advantage of the both “risk-on” sentiment (thus Japanese yen depreciation), along with boosted data on behalf of Switzerland. Solid SECO data alongside with a more independent SNB announcement (fully justified by the solid Swiss data so far), will boost further the pair. At the time of writing the CHF/JPY is trading at 107.92, up 0.53% and near its daily high as of 107.99. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes timeframe. Daily pivot point support can be found at 107.02, 106.75, 106.48 and resistance at 108.00, 108.32 and 108.74, respectively.
Risk on prevails after traders caught off guard on FOMC decision; CHF/JPY up
The CHF/JPY continues to set up its upward trend momentum since the 16th of September. Taken for granted that we are ahead of a very light Asian week end, as Chinese markets are closed on both Thursday and Friday due to the mid-Autumn festival (the Hong Kong Stock Exchange is shut on Friday only), we should pay significant focus on today SNB’s minutes. The yesterday’s Swiss ZEW data came strong enough, though slightly weaker than expected. It is noteworthy though, that the ZEW data in Switzerland has been releasing at improved levels since the January of 2013, apart from August. Today we are ahead of very crucial data regarding the “Swissie”. The SNB will announce its rate decision which is expected not to change at all, but the real markets movers are the SECO data. Elaborating on, just a bit earlier the trade balance of Switzerland for August narrowed to +1.85B versus +1.80B expected. What’s more, the Swiss Government upgraded 2014 GDP outlook to 2.3% versus 2.1% forecast in June. Needless to say, it seems that the Swiss franc could take advantage with important event risk of its own. With financial stability proving more convincing, it’s probable that the pair will move higher.
Technical outlook on CHF/JPY
With the market still sensitive to fundamentals following Wednesday’s volatility, the “Swissie” takes absolute advantage of the both “risk-on” sentiment (thus Japanese yen depreciation), along with boosted data on behalf of Switzerland. Solid SECO data alongside with a more independent SNB announcement (fully justified by the solid Swiss data so far), will boost further the pair. At the time of writing the CHF/JPY is trading at 107.92, up 0.53% and near its daily high as of 107.99. The FXstreet.com Trend Index shows the pair to be slightly bearish in the 15 minutes timeframe. Daily pivot point support can be found at 107.02, 106.75, 106.48 and resistance at 108.00, 108.32 and 108.74, respectively.