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20 Sep 2013
CHF/JPY reattempting the break out highs
FXstreet.com (London) - CHF/JPY broke out of consolidation as the markets digested the shocks that were coming of yesterdays FED and FOMC, climbing to 109.29 the high.
CHF/JPY is benefitting from boost to risk apatite as the Yen is used as funding currency, and with the USD/JPY requiring a stronger dollar to be over 100.00, the markets may prefer to sell Yen vrs such markets as NZD, AUD, NOK and the CHF. The markets have been enough forward guidance to position themselves decisively until the next meeting at least. However, teams at BBH said, “ Given the emphasis the Fed put on the risks of higher US rates to the economic outlook, we think that the October 29/30 meeting is too soon to see any material change in the US outlook. That leaves the December 17/18 meeting, and will be very data dependent”.
CHF/JPY breaks out of consolidation
Fan Yang , Forex Trader, Analyst, Educator at FXTimes noted the daily breakout. “The daily chart shows the market breaking out of a consolidation since April. The support was not always clear, but resistance was around that 107.50 area. You can also see that this consolidation was on the back of an already bullish market and price remained above the 200-day SMA, which reflects continuation of the uptrend. Also note the rising speedline that has supported all of 2013 price action”.
CHF/JPY is benefitting from boost to risk apatite as the Yen is used as funding currency, and with the USD/JPY requiring a stronger dollar to be over 100.00, the markets may prefer to sell Yen vrs such markets as NZD, AUD, NOK and the CHF. The markets have been enough forward guidance to position themselves decisively until the next meeting at least. However, teams at BBH said, “ Given the emphasis the Fed put on the risks of higher US rates to the economic outlook, we think that the October 29/30 meeting is too soon to see any material change in the US outlook. That leaves the December 17/18 meeting, and will be very data dependent”.
CHF/JPY breaks out of consolidation
Fan Yang , Forex Trader, Analyst, Educator at FXTimes noted the daily breakout. “The daily chart shows the market breaking out of a consolidation since April. The support was not always clear, but resistance was around that 107.50 area. You can also see that this consolidation was on the back of an already bullish market and price remained above the 200-day SMA, which reflects continuation of the uptrend. Also note the rising speedline that has supported all of 2013 price action”.