Trade Idea for CHF/JPY
Bias: Counter-Trend
While the underlying fundamentals may favor a bullish move for CHF/JPY, there are compelling reasons to consider a counter-trend trade:
Bank of Japan's (BoJ) History with USD/JPY: The USD/JPY is inching closer to the significant 150 level. Notably, in the past, when the pair approached this level, the BoJ stepped in to intervene in the forex market. Should history repeat itself, this intervention could create ripples across JPY pairs, including CHF/JPY.
Market's Anticipation of FED Moves: The market chatter is starting to buzz about potential rate cuts by the Federal Reserve in 2024. Any significant shift in interest rate expectations can induce forex market volatility, potentially benefiting our counter-trend perspective on CHF/JPY.
Conclusion: While going against the grain of fundamentals might seem risky, the potential BoJ intervention combined with changing rate expectations from the FED presents an intriguing counter-trend opportunity for CHF/JPY.
Bias: Counter-Trend
While the underlying fundamentals may favor a bullish move for CHF/JPY, there are compelling reasons to consider a counter-trend trade:
Bank of Japan's (BoJ) History with USD/JPY: The USD/JPY is inching closer to the significant 150 level. Notably, in the past, when the pair approached this level, the BoJ stepped in to intervene in the forex market. Should history repeat itself, this intervention could create ripples across JPY pairs, including CHF/JPY.
Market's Anticipation of FED Moves: The market chatter is starting to buzz about potential rate cuts by the Federal Reserve in 2024. Any significant shift in interest rate expectations can induce forex market volatility, potentially benefiting our counter-trend perspective on CHF/JPY.
Conclusion: While going against the grain of fundamentals might seem risky, the potential BoJ intervention combined with changing rate expectations from the FED presents an intriguing counter-trend opportunity for CHF/JPY.
