CHF/JPY

📜 History

The Swiss National Bank was founded in 1905 to manage Switzerland's monetary policy. The Bank of Japan was founded in 1882, and the yen became Japan's standard currency in 1871. Both countries left the gold standard in the 1930s. From 1944, both currencies were pegged to the US dollar under the Bretton Woods system. That system collapsed in 1971, and both currencies began floating against other currencies in 1973. The Plaza Accord of 1985 pushed the yen sharply higher, and Japan's asset bubble burst in the early 1990s. Low interest rates in both countries later made the pair a common funding leg for carry trades, which can unwind sharply, as seen in August 2024.

⚙️ What moves the price

• →Interest rate decisions and policy guidance from the Swiss National Bank and Bank of Japan, which change the rate gap between the two currencies
• →Global risk sentiment: sharp sell-offs tend to strengthen both CHF and JPY against riskier assets
• →Yen carry trade flows, since borrowing yen at low rates to buy higher-yielding assets can reverse quickly in stress
• →Currency intervention by the Japanese government or the Swiss National Bank, which can move the pair abruptly
• →US Treasury yields and US economic data, which influence the broad dollar and yen

Character

• •Calmer than GBP/JPY, with long trends on H1.
• •Lower liquidity — the spread is wider than on major pairs.
• •Moves on decisions of the SNB and the Bank of Japan.

When to trade

• ✅European session and the Tokyo morning.
• ✅Hourly trend continuations.

When not to trade

• ⛔SNB and Bank of Japan decisions.
• ⛔Night hours with a wide spread.

Our verified setups

Latest closed signals

• SELL · H1 · SL02/11−$102
• SELL · H1 · SL02/11−$102
• SELL · H1 · SL15/10−$102
• SELL · H1 · TP529/09+$323
• SELL · H1 · TP528/09+$370

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.