CHF/JPY Forecast Today -17/06: Franc Vs Yen Rise (Chart)
Date
6/17/2024 2:44:31 PM
(MENAFN- Daily Forex)
The Swiss franc continues to look strong against the Japanese yen, as the markets continue to test the meddle of the bank of Japan, as The central bank continues to keep interest rates extraordinarily low. Because of this, we have seen the Japanese yen pummeled by just about any currency out there, and even though the Swiss franc is a lower yielding currency, it's not a huge surprise to see that traders wish to hang on to this market, due to the fact that you get paid at the end of every day.
Swiss franc safety
It's probably worth noting that the Swiss franc is probably going to pick up a little bit of momentum anyway, due to the fact that it is considered to be a safety currency. We are in the midst of a lot of geopolitical tensions, and that of course helps the Swiss franc. Furthermore, the European Union seems to be falling apart, and the European central bank has recently cut rates. While the Swiss National Bank has done the same, the reality is that traders are used to low rates in Switzerland as in is more or less considered to be a place where you park your money for safety.
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The fact that we made a fresh, new high and broke above the 176 yen level is a very big deal. That we are going to continue to see momentum jumping into this market, and although this is one of the slower moving yen denominated pairs, I like to look at this chart as a bit of an indication as to where funding currencies may go over the next several sessions. As it looks right now, I suspect that the Japanese yen is about to face another round of pressure, and although I'm not necessarily keen on the Swiss franc itself, I would much rather own it than the Japanese yen, as seen on this chart. With this, I continue to buy short-term dips, as they offer a bit of value.
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