The CHF / JPY is under pressure, testing important support at 87.00.

[RTFX-Trading]

The CHF / JPY is under pressure, testing important support at 87.00.

The Swiss Franc against Japanese Yen (CHF / JPY) cross interests me particularly because:

From a technical standpoint, the CHF / JPY is testing the trend line at 87.00, while it is currently below the 55 and 100 day moving averages. The pair was clearly unable to break 90 (50% retracement of the last drop from 105.10 to 74.86). Technically, the CHF / JPY is bearish.

[IMG]http://www.rtfx.com/images/news/CHFJPY.png[/IMG]

From fundamental point of view, as we discussed yesterday, the DPJ’s electoral victory in the Japanese elections, should favor an increase in the Japanese Yen. From the Swiss side, the Swiss National Bank do not want an increase of Swiss franc, as proved by their interventions in recent months in this direction.

After the quiet summer period, we expect important movements of funds, the CHF / JPY cross might suffer from assaults by investors...

Nicolas Longchamp
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