Nov 08, 2024 (MENAFN via COMTEX) --
(MENAFN - Daily Forex)
During my daily analysis of exotic currency pairs, I've noticed that the Swiss franc has fallen a bit against the Japanese yen, but really at this point in time it's obvious that the market is going to continue to see quite a bit of buyers underneath. The ¥175 level is of course a large, round, psychologically significant figure, and an area that's been important a couple of times. However, the market also looks as if it is going to pay close attention to this area, so it'll be interesting to see if we bounce from there.
Why I Follow This Pair Daily
The main reason I follow this CHF/JPY pair daily is that I love doing the carry trade set up when it offers itself out there. That being said, I also recognize that both of these currencies are considered to be"safety currencies" and are often used as"funding currencies" for carry trades. So, while this pair goes up and down, a lot of times I don't actually trade what is going on this chart, at least not directly.
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In this example, it looks like the Swiss
franc is losing to the Japanese yen, so if you are looking to do an interest rate play trade, you might want to short the
CHF against a higher yielding currency, perhaps the
New Zealand Dollar as an example. On the other hand, if the
Japanes Yen were to be losing strength, then the play might be to bind the NZD/JPY pair.
All that being said, it's not that I won't trade this market, it's just that typically I use it as a tertiary indicator. If we bounce from the ¥175 level, then it's likely that the market could bounced to the ¥177 level. If we break above there, then I would see the ¥177.50 level as a significant barrier, and if we can get above there, then the market is likely to go looking to the ¥180 level. On the other end, if we were to break down below the ¥175 level, then it's likely that we could go down to the 50 Day EMA indicator, which of course is rising quite rapidly.
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COMTEX_459614963/2604/2024-11-08T18:10:58
