At the end of last week, the Swiss franc rose to 176.46 yen, the same high level seen on April 11. However, it could not go above that point and started to fall.
Yesterday, when the European market opened, the head of the Swiss National Bank (SNB), Schlegel, made comments that caused people to sell the Swiss franc. He said the SNB is ready to act in the currency market if needed, that negative interest rates are still possible, and that economic growth in Switzerland may slow down due to uncertainty.
Switzerland has often tried to keep its currency weak to support exports. Now, when the franc gets close to 177 yen, Swiss officials may speak out more to stop it from getting stronger.
If the price drops below 172 yen, it could form a “double top” pattern, which might lead to a further fall.
Expected CHF/JPY Price Range: 172.30 – 173.8
Note: This information does not guarantee profit. Please make your own decisions when trading.