- Swiss Franc dived against the Japanese Yen, and it looks like there is more downsides left in the near term.
- A break below the recent low of 120.90 may take the CHFJPY pair further lower.
- Japanese All Industry Activity Index released by the Ministry of Economy, Trade and Industry posted a decrease of 0.2% in September 2015 whereas the market was expecting an increase of 0.2%.
- Swiss Trade Balance released by the Federal Customs Administration posted a trade surplus of 4,156M in October, more than the forecast of 3,400M.
The CHFJPY pair tumbled recently and traded lower towards 121.00 where it just managed to gain traction. However, there is no relief for buyers, as it remains at risk of more declines. There are a couple of monster bearish trend lines formed on the hourly chart of the CHFJPY pair, which may continue to act as a hurdle for the pair moving ahead.
The hourly RSI is around the oversold levels, suggesting a minor correction is possible in the short term that can be seen as a selling opportunity.
On the downside, a break below 120.90 may ignite more losses in CHFJPY.
Swiss Trade Balance
The Swiss Trade Balance, which is a measure of balance amount between import and export was released by the Federal Customs Administration. The forecast was lined up for a trade surplus of 3,400M in October 2015. However, the result was above the forecast with a trade surplus of 4,156M. Imports and Exports came in at 14,693M and 18,849M respectively.
Overall, the report was in favor of the Swiss Franc, but there was hardly any buying interest noted in CHFJPY.
So, it looks like the pair is under pressure, and if it corrects higher, it can be seen as a selling opportunity.