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Will Market Participants Wait and See How Much Room the Swiss Franc Has to Recover After Weakening Following the Japanese Yen?

Market Report

Will Market Participants Wait and See How Much Room the Swiss Franc Has to Recover After Weakening Following the Japanese Yen?

Today's Highlights
  1. South Africa SACCI Business Sentiment Index
  2. Germany: Wholesale Price Index

Last weekend, the U.S. dollar rose against the yen. The USD/JPY pair rose from 146.717 to 147.904, recovering from the -2σ to +2σ levels of the hourly Bollinger Bands.On the 4-hour chart, the 200 SMA is acting as a support level, and the pair has rebounded from there. On the daily chart, the pair is currently searching for direction just below the 20 MA. Since the pair is trading above the 20 MA on the weekly chart, we will need to closely monitor price action at the start of the week.

Among European currencies, the Swiss franc weakened slightly, following the Japanese yen. The USD/CHF pair rose from 0.8051 to 0.8088. It moved from below the 20-period moving average (MA) on the hourly chart to above it.On the 4-hour chart, while the price is finding support at the 200-period EMA, it is forming lower highs along the 20-period MA. On the daily chart, the price has been trading sideways at the same level for about a week.

Today’s economic indicators include the South African SACCI Business Confidence Index (time TBD), the German Wholesale Price Index, and South African Manufacturing Output at 20:00.No other major economic indicators or key speeches are scheduled in Europe or the U.S. Additionally, Japanese markets are closed today for the Mountain Day holiday. We will cautiously monitor the Swiss franc, which has weakened slightly after the Japanese yen, to see if there is room for recovery.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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