Should investors be wary of a corrective decline in the Swiss franc/yen pair, which has dipped into the upper 158 yen range?

Should investors be wary of a corrective decline in the Swiss franc/yen pair, which has dipped into the upper 158 yen range?

20.06.2023

In the previous day’s U.S. currency trading, volatility in the GBP/USD pair declined as U.S. markets were closed for a holiday. The GBP/USD fell by approximately 60 pips from 1.2836 to 1.2771. This move caused the pair to break below the 20-period moving average on the hourly chart, ending the uptrend that had been in place since the 5th of this month.On the higher-timeframe daily chart, the pair has broken well above the 1.2739 line, which marks the upper boundary of the ascending parallel channel, so we should be on the lookout for a corrective decline.

Among European currencies, the Swiss franc, which is set to release its trade balance data today, saw a seesaw battle against the yen. The CHF/JPY pair fluctuated between 157.929 and 158.771.During today’s Asian trading session, the pair has been trading around 158.162. Furthermore, since the CHF/JPY pair still has room to reach the upper limit of the monthly ascending parallel channel—which began in June 2012—at the mid-162 yen level, we should watch for a continued upward trend following a period of consolidation.

Today’s schedule includes Germany’s Producer Price Index and Switzerland’s trade balance at 3:00 PM, Japan’s machine tool orders at 3:00 PM, the Eurozone’s current account balance at 5:00 PM, Hong Kong’s Consumer Price Index at 5:30 PM, the Eurozone’s construction output at 6:00 PM, and U.S. Federal Reserve Board member:St. Louis Fed President’s remarks, at 9:00 PM: Hungary’s MNB policy rate and Mexico’s retail sales, at 9:30 PM: U.S. housing starts and building permits, and at 12:45 AM: U.S. Williams, NY Fed President’s remarks and U.S. Barr, Fed Vice Chair’s remarks.We should be wary of a corrective decline in the Swiss franc/yen pair, which has touched the upper 158 yen range.