CHF/JPY FULL ANALYSIS: Bearish wedge and Fib on the way
TECHNICALS:
The CHFJPY pair faced some resistance at the upper line of a bearish wedge which also aligns with the 61.8% Fib and a horizontal resistance level. However, the 1-hour chart shows some short-term support levels which have to break first to confirm further weakness. We'll look for a break below 111.50.
POSITIONING:
Strong bullish flows in both CHF and JPY. Asset managers are slightly more bullish on JPY than on CHF.
MARKET THEMES: Favour a weaker CHFJPY as markets shift their focus to Japan's fresh monetary stimulus.
CORRELATIONS: Slight divergence with German/JP 2y yields (Note that CHF and EUR are highly correlated currencies).
The CHFJPY pair faced some resistance at the upper line of a bearish wedge which also aligns with the 61.8% Fib and a horizontal resistance level. However, the 1-hour chart shows some short-term support levels which have to break first to confirm further weakness. We'll look for a break below 111.50.
POSITIONING:
Strong bullish flows in both CHF and JPY. Asset managers are slightly more bullish on JPY than on CHF.
MARKET THEMES: Favour a weaker CHFJPY as markets shift their focus to Japan's fresh monetary stimulus.
CORRELATIONS: Slight divergence with German/JP 2y yields (Note that CHF and EUR are highly correlated currencies).
Comment:
Pair hasn't broken below our watched level, it's still not active.
