The CHF/JPY exchange rate is currently showing a bearish bias.
Key drivers influencing this trend include:
- Interest rates: The Swiss National Bank has cut rates, while the Bank of Japan recently raised its rate to curb inflation, giving JPY an edge.
- Economic conditions: Japan's inflation is above target, prompting stronger monetary action. In contrast, Switzerland's inflation has dropped below expectations, weakening the CHF.
- Risk of intervention: Japan’s government is closely monitoring the yen's value amid rising import costs.
Expect the CHF/JPY to trade within a moderate range over the next few months, reflecting a stable but cautious market.
Upside risks include potential intervention by the Bank of Japan to stabilize the yen, while downside risks might arise from ongoing tariffs on Swiss exports, which could further pressure the CHF. Recent oil price trends near 30-day highs could also impact JPY stability as commodities influence yen valuation.