Should we be wary of a correction in the CHF/JPY pair, which surged to near this year's highs?

Should we be wary of a correction in the CHF/JPY pair, which surged to near this year's highs?

23.02.2024

In yesterday's U.S. currency trading, the U.S. dollar rose against the yen. The USD/JPY pair climbed, aided by conditions in which the Japanese yen was heavily sold. It rose from 150.019 to 150.688, approaching this month's high of 150.885.On the daily chart, the 10-day moving average (10MA) is acting as a support line, and the gradual uptrend continues. Since there are no signs of a sharp increase in volatility, we will be watching for further upside potential during U.S. trading hours.

Among European currencies, the Swiss franc—which had been the strongest currency the day before yesterday—lost momentum against the yen, forming a bullish candle with an upper shadow on the daily chart. The CHF/JPY pair touched 171.695 before plummeting. It continued to decline from European to U.S. trading hours, finally finding support at the 75-period moving average on the hourly chart.During today’s Asian session, the pair is being capped by the 20-period moving average in the upper 170s, so we should remain cautious regarding price movements during European trading hours.

Today’s economic indicators include New Zealand retail sales at 6:45, the UK GfK Consumer Confidence Index at 9:01, remarks by Fed Governor Waller at 9:35, China’s new home sales prices at 10:30, Malaysia’s Consumer Price Index at 13:00, Singapore’s Consumer Price Index at 14:00, Turkey’s capacity utilization rate at 16:00,Turkey’s Economic Sentiment Index, and Germany’s Real GDP; at 17:00, remarks by UK MPC member Green; at 18:00, Germany’s IFO Business Climate Index; and at 19:00, remarks by German Bundesbank President Nagel. We should remain highly vigilant regarding any corrective price movements in the CHF/JPY pair, which has surged to near this year’s highs.