After a long stretch of stagnation, the CHF/JPY currency pair appears poised for a significant shift, breaking free from its triangle pattern that’s kept traders on their toes. So, the real question is—will it soar to new heights, or will it dive down into the depths? Market sentiment and fundamental conditions play a pivotal role here, especially with the ongoing uncertainty surrounding global trade, propping up safe-haven currencies like the Swiss franc and Japanese yen. With a hawkish Bank of Japan hinting at the possibility of interest rate hikes, this could mean an intriguing setup for traders to watch closely. Let’s delve into the technicals and see how the next moves could unfold! LEARN MORE.This currency pair has been in consolidation mode for quite some time, but it looks ready to make a breakout from its triangle pattern pretty soon.
Which way can it go?
Better keep these inflection points on your radar!
CHF/JPY 4-hour Forex Chart by TradingView
Market uncertainty from global trade concerns have been propping up safe-haven currencies like the Swiss franc and Japanese yen lately, although the latter has drawn additional support from a hawkish Bank of Japan.
Recall that the BOJ recently started its tightening cycle, and remarks from policymakers appear to be hinting at even more interest rate hikes down the line.
Can this mean a bearish break for CHF/JPY?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Japanese yen and Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
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