Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Japanese National CPI for June increased 0.3% monthly and 0.2% annualized. Forex traders can compare this to the Japanese National CPI for May, which increased 0.3% monthly and decreased 0.1% annualized. The Japanese National Core CPI for June decreased 0.2% monthly and increased 0.2% annualized. Forex traders can compare this to the Japanese National Core CPI for May, which decreased 0.2% monthly and increased 0.1% annualized.

The Swiss Trade Balance for June was reported at CHF5.529B. Forex traders can compare this to the Swiss Trade Balance for May, reported at CHF4.847B.

The forecast for the CHF/JPY remains bearish as the risk-off sentiment is likely to extend. While both currencies are known as safe-have currencies, the Japanese Yen has the upper hand. Volatility is expected to remain elevated with the Kijun-sen flat and the Tenkan-sen drifting lower. Adding to short-term bearish momentum is the crossover of the Senkou Span A below the Senkou Span B, giving the Ichimoku Kinko Hyo Cloud a bearish bias. The CCI moved into extreme oversold territory and may push above it before resuming its downtrend, with plenty of downside potential ahead. Will bears remain in charge of price action in the CHF/JPY and force it into its next horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the CHF/JPY remain inside the or breakdown below the 118.850 to 119.550 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 119.150
• Take Profit Zone: 115.900 – 116.550
• Stop Loss Level: 120.150

Should price action for the CHF/JPY breakout above 119.550, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 120.150
• Take Profit Zone: 121.400 – 121.750
• Stop Loss Level: 119.550

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