Should we be wary of the upside potential for the Swiss franc, which continues to hit new highs?
28.01.2026
- U.S. FOMC Policy Rate and Statement Release
- German GfK Consumer Confidence Survey
In the U.S. currency market yesterday, the Canadian dollar continued to decline against the yen. The CAD/JPY pair fell from 112.752 to 111.737. It broke below the 20-period moving average (MA) on the hourly chart, with both the high and low prices moving lower.On the 4-hour chart, the price is facing resistance at the 10-period moving average (MA), while on the daily chart, the candlesticks have fallen just below the 75-period MA. The currency has weakened to levels not seen since last November. Additionally, on the weekly chart, the price has broken below the 10-period MA—which had served as the support line for the uptrend—with a real body.
Among European currencies, the Swiss franc was the strongest during U.S. trading hours. The USD/CHF pair fell from 0.7783 to 0.7604, pushing the hourly RSI down from 50 to 12. On the 4-hour chart, the price is moving along the -2σ line of the Bollinger Bands, while on the daily chart, it has risen to levels last seen during the Swiss franc shock. The daily RSI has plummeted to 24.
Today's economic indicators include the release of the BOJ meeting minutes at 8:50, the Australian CPI at 9:30, and the GermanGFK Consumer Confidence Survey, 9:00 PM for the U.S. MBA Mortgage Applications Index, 11:45 PM for the Canadian BOC policy rate and statement, 12:30 AM for U.S. weekly crude oil inventories and a press conference by BOC Governor Maclean, 4:00 AM for the U.S. FOMC policy rate and statement, and 4:30 AM for a press conference by Fed Chair Powell.We should remain cautious about the upside potential of the Swiss franc, which continues to hit new highs.
Author: Keisuke Sakurai
