CHFJPY: Live Swiss Franc-Japanese Yen Rate, Chart, Forecast
The currency pair CHFJPY is far from being the most traded currency pair in Forex, containing neither the Euro nor the Dollar, the two dominant currencies. However, the CHF/JPY has some significant strengths that short-term traders will especially appreciate. In this analysis, we will tell you more about the specifics of the CHF JPY. We will also discuss the historical development of the CHFJPY exchange rate.
We will also look at what technical analysis can tell us about the current environment for the CHF/JPY and look at the CHFJPY forecast. This guide will also teach you how to perform fundamental analysis of the CHF JPY, and provide you with valuable tips on how to start trading the CHFJPY in the best possible conditions. Finally, we will introduce you to an online broker that we consider ideal for CHF/JPY trading.
What is CHFJPY ? Overview
The CHF/JPY pair is a cross-currency pair because it does not contain the dollar, the dominant world currency. It is sometimes classified as an exotic currency pair since it pits a European currency against an Asian currency.
Specifically, the CHFJPY pair expresses the value of 1 CHF in JPY to make conversions from Swiss Franc to Yen. Therefore, the evolution of the CHFJPY pair depends simultaneously on the evolution of the Swiss franc and the evolution of the Japanese yen. CHF JPY traders should therefore be interested in the relative health of the Swiss and Japanese economies and the monetary policy of the two central banks involved.
CHF JPY Trading Characteristics
The lower liquidity of the CHFJPY relative to the major currency pairs means that volatility is also higher. This means that both the potential for gains and losses are high in the CHFJPY.
This is an opportunity for us to point out that CHF/JPY trading is often more profitable in the short term than in the long term. This is the case for all forex currency pairs.
Regarding the CHFJPY correlations, it should be noted that the currency pair with which the CHF/JPY is most strongly correlated is the CAD JPY.
Finally, on the practical side of things, CHFJPY traders need to open an account with an online broker where they will need to deposit a sum of money to be used for CHFJPY trading. As we will explain later in this guide, opening an account with a forex broker is a quick and easy process that is done entirely online.
Below you can see a CHFJPY live chart, showing the exchange rate variations in real-time.
How to Read the CHFJPY Chart
The CHFJPY chart work differently than what we are used to with stocks. While all U.S. stocks are priced in dollars, the currency of quotation changes from one currency pair to another.
In the case of the CHFJPY pair, the CHF is called the base currency, while the JPY is called the quote currency. Therefore, the evolution of the CHF JPY pair measures the change in the amount of Japanese Yen needed to buy one Swiss Franc. Finally, traders should note that there are several types of CHFJPY charts. However, the most popular charts for traders are the CHFJPY Japanese candlestick charts.
It is also possible to display CHFJPY charts of various time frames, allowing one to look at the evolution of the CHFJPY over the last few hours and over the previous few decades.
CHFJPY Historical Data
In this section, we will analyse the historical evolution of the CHFJPY exchange rate. First, we will look at the major phases of its evolution over the last decades. Then, we will perform a shorter-term technical analysis of the CHFJPY.
CHFJPY Exchange Rate History
Below we will start by looking at the very long-term trend of the CHFJPY.
First of all, we will note that the CHF/JPY has the particularity of displaying an obvious long-term trend. Indeed, the monthly CHFJPY chart allows us to identify an upward trend since the early 2000s.
After an all-time low below 60 yen in September 2000, the CHF JPY rose to an all-time high of over 138 yen in January 2015. The CHFJPY posted a correction following this record high, but this correction was not enough to challenge the underlying uptrend.
Although forex trading is best done in the short term, looking at the long-term trend of the CHFJPY shows that it is one of the few currency pairs where one could consider a multi-year trend-following trades.
CHFJPY Exchange Rate Today
Below, we will look at the shorter-term context of the CHF/JPY's evolution based on a weekly chart.
Following its all-time high near 140 yen in 2015, CHF JPY posted a correction to a low of around 101 yen in June 2016. Since then, the CHFJPY has been in a positive trend. In particular, we can spot a bullish trend line since the end of 2019, which is clearly visible on the weekly chart.
However, it is essential to note that most CHFJPY traders are not concerned with the underlying trend. Indeed, CHFJPY trading is mostly approached in the short term.
More importantly, CHFJPY traders can make money whether the trend is up or down. Indeed, forex brokers like ZFX allow you to bet up or down without complication on all currency pairs.
What Influences CHFJPY Exchange Rate?
This section will look at the main economic mechanisms that govern the evolution of the CHFJPY exchange rate. You will then be able to perform your own CHFJPY analysis from a fundamental point of view.
Central Bank Monetary Policy
The monetary policy of central banks and the level of interest rates is the main factor influencing the evolution of currency pairs, and the CHFJPY pair is no exception. In this case, we will look at the policy of the Swiss National Bank and the Bank of Japan.
The looser a monetary policy is, (with low rates and large asset purchases), the more it weighs on the currency in question. Thus, CHFJPY traders should ask themselves which of the two central banks has the more dovish monetary policy, with the advantage going to the currency with the less dovish monetary policy.
The economic indicators published each day in the economic calendar are also potentially influential elements on the CHF to JPY. Specifically, it is the Swiss statistics and the Japanese statistics that will likely influence the currency pair.
Therefore, any CHF JPY trader should start their day by learning about the potentially influential indicators expected in the coming hours. This is because it helps to identify in advance when CHF/JPY volatility is likely to spike. Note that you will also need a good CHFJPY news source to also follow the general economic news of the 2 countries.
Evolution of Stock Market Indices
Finally, traders should note that the evolution of stock market indices, in this case, those of Switzerland and Japan, can influence the CHFJPY. If Japan's stock markets are rising sharply, international investors will want to buy Japanese stocks, which will create a strong demand for the yen and thus a rise in JPY. Conversely, a strong uptrend in the Swiss stock market will increase demand for Swiss francs from international investors and thus strengthen the CHF.
CHFJPY Forecast and Predictions
As we have just seen, the factors that govern the evolution of the CHF/JPY currency pair are very varied and complex. This means that CHFJPY forecasts are generally unreliable in the medium to long term, as is the case with all currency pairs.
It is partly for this reason that forex trading and CHF to JPY trading are mostly reserved for short-term trading. In fact, the only CHF JPY 2022 forecast we could find during the research for this guide comes from Wallet Investor, which predicts a CHFJPY exchange rate of 126.7 over the next year.
Why Trade CHFJPY Today?
Below we have put together the main reasons why you should consider trading CHFJPY.
Volatility: While not one of the most volatile pairs in Forex, CHFJPY has a higher volatility than major currency pairs such as the Euro-dollar. Thus, CHFJPY could be considered an ideal middle ground for those who want to aim for larger than average gains without going into overly exotic currency pairs.
Leverage: As with all currency pairs, it is possible to trade the CHFJPY with high leverage. This makes it possible to make significant gains even with minor changes in the CHFJPY exchange rate. However, one should never forget that leverage also multiplies the risk of losses.
Few economic indicators to watch: Switzerland and Japan publish relatively few economic indicators compared to Europe or the United States. This means fewer important events to follow each day with the CHF to JPY pair than with the euro-dollar pairs. This reduces the risk of sudden and violent movements in the CHFJPY.
Diversification out of the Euro and Dollar: Since it does not contain the Euro or the Dollar, the CHFJPY is one of the most suitable currency pairs for diversification. Indeed, many traders focus their trading on one major currency pair, such as the euro-dollar, and do some trading in other currency pairs to diversify. CHFJPY ideally suits this need.
Where Can I Invest in the CHFJPY Pair?
It is sometimes difficult to choose an online broker as there are so many. That's why we've reviewed many of them to determine which is the best one to trade CHF to JPY. And the name that came up most often was the broker ZFX. This is a relatively new broker, as it was only created in 2018. However, its seriousness is undeniable as the FCA regulates ZFX.
ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many technical analysis and automated trading advantages. Also, as you can see by yourself with a demo account, the spread for CHFJPY is usually lower than 3 pip. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Trade CHFJPY Now
Trading CHFJPY through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes. All you have to do is follow these steps:
- 1 - Register with ZFX
- 2 - Verify your ZFX account
- 3 - Make your first deposit
- 4 – Trade CHFJPY
Let's go through each of these steps in detail.
1 - Register with ZFX
For this first step, you will need to go to the ZFX broker's website, and click on the "open an account" button. You will then have to fill in a registration form with several personal details, including your phone number, which will be verified by SMS.
After filling out the form, click on the "Next" button at the bottom of the page.
Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.
2 - Make your First Deposit
To do this, click on the "make a deposit" button on the screen displayed immediately after registration. You will then be asked to choose a payment method. Let's take Mastercard as an example:
On this screen you will need to indicate the deposit amount and then click on the "Confirm Deposit" button. Then, provide your credit card information before the final validation of the payment.
3 - Account Verification
Finally, you must proceed with the account verification by sending supporting documents.
As shown in the image above, you will need to upload the documents directly to the ZFX website.
4 – Trade CHFJPY
Once ZFX validates your documents, you can then start to trade CHFJPY.
Tips for CHFJPY Beginner Traders
Before we conclude this guide, we will share with you in this section the tips we feel are most essential to get you started in CHFJPY trading.
Learn About CHFJPY Technical Analysis
While long-term investing relies mainly on fundamental analysis, short-term trading, recommended for the CHFJPY, relies heavily on technical analysis. It is therefore essential for all CHFJPY traders to learn the basics of chart analysis. Technical analysis will allow you to analyse trends at a glance, find trading signals, and determine accurate entry and exit points for the CHFJPY. You will also learn how to sport the most important CHF JPY resistances and supports.
Develop a Trading Method
Multiplying your knowledge of technical analysis is not the best way to succeed in CHF/JPY trading. It is better to master only a few elements of CHF JPY technical analysis but to use them intelligently as part of a coherent trading method. You will need to define a strategy that defines the criteria and parameters you will consider when entering and exiting positions, including how to calculate your CHFJPY stop loss.
You will then have to make sure that you follow this method carefully for each CHFJPY trade. Then, periodically, you will be able to analyse the results of your operations to modify your CHFJPY trading strategy to improve it eventually.
Choosing an Effective Broker
Of course, you will also need a good broker to succeed in trading CHFJPY. In particular, it is essential to choose a regulated broker to ensure the safety of your funds. You will also need to verify through the use of a demo account that the broker's trading platform offers all the features you need. Finally, you should also ask about the fees. In this case, it will be the CHFJPY spread.
Include CHFJPY Trading as Part of a Global Investment Strategy
Finally, investors should remember that CHFJPY trading is mainly practiced in the short term and is considered relatively risky. Therefore, it is best to approach CHFJPY trading as part of an overall investment strategy that will allocate some capital to investments and risky trading and reserve some for longer-term, less risky investments.
Bottom Line: Is CHFJPY a Good Investment Now?
Far from being one of the most traded currency pairs in Forex, the CHFJPY is a currency pair that has many undeniable advantages, as we have seen throughout this guide. In particular, it is a currency pair that offers an ideal middle ground in terms of volatility. CHF/JPY is also an easier currency pair to follow than many others.
If you would like to start discovering what CHF/JPY trading can do for your investment strategy, we recommend that you look into online broker ZFX today. Our research for this guide has shown us that this is one of the best brokers for CHF to JPY trading. We particularly appreciate its very efficient MT4 platform as well as its low CHF JPY spread.