Should we be wary of further downside potential in the falling CHF/JPY pair?

Should we be wary of further downside potential in the falling CHF/JPY pair?

22.11.2024

In U.S. trading yesterday, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 111.247 to 110.237, trading below the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair briefly dipped below the 75-period MA support line. On the daily chart, prices have been rejected by the 200-period simple moving average (SMA) and have pulled back; therefore, we will be watching closely to see if the Canadian dollar continues to weaken during U.S. trading hours.

Among European currencies, the Swiss franc fell sharply against the yen. The CHF/JPY pair dropped from 175.791 to 174.064. The price broke below the support line of the 200-period simple moving average (SMA) on the hourly chart. Furthermore, the price continued to decline during today’s Asian session, and on the daily chart, it has shifted to trading below the 20-period moving average (MA). We should watch to see if the Swiss franc’s decline continues during the European session.

Today’s economic indicators include UK retail sales and German Q3 GDP at 4:00 PM, French manufacturing and services PMIs at 5:15 PM, German manufacturing and services PMIs at 5:30 PM, Eurozone manufacturing and services PMIs at 6:00 PM, and UKmanufacturing/services PMI, at 21:40, remarks by Swiss National Bank President Schlegel, at 22:00, remarks by German Bundesbank President Nagel, at 22:30, Canadian retail sales, and at 23:45, U.S. manufacturing/services PMI. We must remain highly vigilant regarding the downside potential of the falling CHF/JPY pair.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed