While Swiss Franc hasn’t been a strong currency recently, it did manage to extend up trend against Yen. It now ready to take out prior high of 158.45 set in 1979, (barring the spike after SNB suddenly removed the cap of Franc in 2015).
Monetary policy divergence between SNB and BoJ continues to be the driving factor for the move. SNB is set to raise interest rate again this week and any hawkish comments or economic projections could propel CHF/JPY further higher.
From a near term point of view, CHF/JPY passed through 161.8% projection of 137.40 to 147.58 from 140.21 at 156.58 last week. There is no sign of topping yet. Near term outlook will stay bullish as long as 155.53 resistance turned support holds. Next target is 200% projection at 160.57.
From a medium term point of view, the up trend from 106.71 is in progress, and will remain on healthy track as long as 151.43 resistance turned support holds. Next target is 61.8% projection of 106.71 to 151.43 from 137.40 at 165.03.
