The CHF to JPY exchange rate is currently bullish.
Recent developments include the Swiss National Bank (SNB) cutting interest rates, now at 0.5%, in response to lower inflation, while the Bank of Japan (BOJ) recently raised rates to 0.75% to combat higher inflation at 3%. The interest rate differential favors the JPY. Additionally, Japan's supportive defense budget may bolster sentiment towards the yen. Meanwhile, the Swiss franc's strength has been pressured by a significant export tariff imposed by the U.S., which threatens the Swiss economy.
The expected trading range for CHF/JPY will likely remain at current levels over the next 1-3 months, reflecting stability around the recent price of 198.0, which is notably higher than its 3-month average.
An upside risk for the franc could arise if the SNB reintroduces negative interest rates to curb currency strength, while a downside risk may stem from fluctuating oil prices, as they have recently dipped significantly.