Swiss Franc vs Japanese Yen
CHF JPY is a cross rate with regard to USD. US dollar has rather less influence on the pair dynamics that euro, Japanese yen, and Asian stock indexes. Swiss franc Japanese yen rate reflects the interrelation of the leading European and Asian financial centers. Switzerland and Japan are forced to have continuous control over the exchange rate of the national currency, including political and not quite market methods. Both parties regularly conduct currency interventions.
Swiss franc, due to its stability, plays the role of the global protection asset, including Asian business interests. CHF JPY currency pair works off actively all crisis situations in the global economy and produces nervous reaction to steadily high demand for yen. Franc keeps on strong connections with EUR, therefore, its behavior in the pair with yen reflects the pair dynamic with yen with a small delay. That gives an opportunity to predict forex CHF JPY dynamics with the help of chart EUR JPY.
The following factors have influence on the CHF JPY forecasts: the main economic indicators of Switzerland, Eurozone, and Japan (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries, as well as ECB and FRS monetary policy; Currency interventions of Japanese yen and Swiss franc; Asian stock indexes (Hang Seng, Nikkei 225, SET50, SSE Composite) that affect the Japanese economy; European stock market indexes FTSE 100, Swiss Market Index, DAX, CAC 40.
Swiss franc Japanese yen rate is always influenced by the actions of large players, as well as by many factors that are not directly connected with the situation in Switzerland, Europe, or Japan. It is not recommended for trade for beginners. Swiss franc Japanese yen currency pair is considered as a low-liquidity asset and ranks 6th in the trade volume at the European session. The main volume: exchange transactions by the central banks of Switzerland and Japan, as well short-term option contracts.