CHF/JPY Forecast Today - 24/09: CHF Threatens JPY (Chart)
Date
9/24/2024 2:59:10 PM
(MENAFN- Daily Forex)
During the trading session on Monday, the first thing I see when looking at the CHF/JPY pair, we have seen a complete turnaround from the initial selloff. This suggests to me that traders are paying close attention to the Japanese yen, and therefore I think you've got a scenario that the risk appetite of traders around the world will be a major issue. The 200 Day EMA above should offer a significant amount of resistance, especially considering that the ¥170 level is an area that I think a lot of people will be paying close attention to.
Technical Analysis
The technical analysis suggests that we are about to see a lot of resistance, because the 200 Day EMA and the 50 Day EMA both come into the picture, as well is a major cluster of selling pressure previously. As we head back into that area, there would be a lot of“market memory” coming into this scenario, as the volatility will almost certainly pick up. If we do manage to break through all of this area, essentially closing above the ¥172 level, then it's likely that we will go much higher. This would more likely than not have a lot more to do with the Japanese yen then the Swiss franc, and it would probably kick off a new era of carry trade action in multiple pairs, not just this one.
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If we turn around and break down below the ¥168.50 level, then the market could go down to ¥166 level. Regardless, this is a market that I think is worth paying attention to because it gives you an idea of how the carry trade will be funded, and that of course is a very important thing to know as far as going to the carry trade situation as it either returns, or it falls apart. Whichever one of these 2 currencies is currently dropping, that's generally the one that I will shorten against higher yielding currencies when I get a technical set up in those pairs.
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