CHF/JPY’s up trend should have passed its climax for the near term. It has been lifted by buying in Swiss Franc on SNB’s hawkish rate hike in June, while BoJ is still standing firm by its ultra loose monetary policy. But recent pull back in benchmark treasury yields is giving Yen a lift. Meanwhile, as for the Franc, the pull back could be deeper if EUR/CHF manages to rebound firmly from 0.9970 long term support.
Technically, a short term top should be in place at 143.74, on bearish divergence condition in 4 hour MACD. Deeper correction cannot be ruled out for now. But downside should be contained by 137.77 cluster support (38.2% retracement of 127.48 to 143.73 at 137.52) to bring rebound. The overall long term up trend in CHF/JPY is still in healthy shape to retest 151.22 high (2014 high, the spike after SNB removed the EUR/CHF floor).
