- Swiss Franc continued to trade higher against the Japanese Yen, but remains at risk of a break lower.
- There is a bullish trend line formed on the 4-hours chart of the CHFJPY pair, which may be broken moving ahead.
- Swiss Producer and Import Prices provided by the Federal Statistical Office posted an increase of 0.2% in October 2015, compared with the preceding month.
- In terms of the yearly change, there was a decrease of -6.6%, less than the forecast of 6.9%.
The CHFJPY pair after declining towards the 121.00 area managed to gain bids. Currently, there is a bullish trend line forming on the 4-hours chart of the CHFJPY pair, which is acting as a support for the upside move.
However, we need not to forget that the pair is under the 100 and 50 simple moving average (MA), suggesting that the bulls are finding it hard to take the pair higher.
A break below the bullish trend line and support area may call for losses moving ahead.
Earlier during the Asian session, the Swiss Producer and Import Prices, which is an indicator of consumer price inflation was reported by the Federal Statistical Office. The forecast was lined up for a decrease of 0.2% in October 2015, compared with the preceding month. However, the outcome was on the positive side, as the Swiss PPI gained by 0.2%.
When we look at the yearly change, the Producer and Import Prices declined by 6.9% in October 2015, compared with the same month a year ago. The outcome was again on the positive side, as the PPI came in at 6.6%.
The Swiss Franc is currently supported by the highlighted trend line, but if there is a break below it then a sharp decline is possible in the near term.