While Swiss Franc and Yen are both the biggest losers for the month so far, Yen is worse by a mile. BoJ is clear that it’s going to maintain the current ultra-loose monetary easing. On the other hand, SNB is sounding more and more open to adjustments on its monetary policy to counter inflation. In particular, if ECB is going to exit negative interest rates later in the year, there is prospect of SNB following, at least with a rate hike.
Technically, the break of 136.16 high confirms resumption of larger up trend from 101.66 (2016 low). That came after the deep pull back was support slightly above 127.05 resistance turned support. For now, near term outlook will stay bullish as long as 134.88 support holds. Next medium term target will be 200% projection of 101.66 to 118.59 from 106.71 at 140.57.
