
USD/JPY and USD/CHF Could Diverge as CHF/JPY Approaches Resistance
USD/JPY and USD/CHF retain bullish structures, but CHF/JPY resistance could expose a divergence between the two US dollar pairs.
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USD/JPY and USD/CHF retain bullish structures, but CHF/JPY resistance could expose a divergence between the two US dollar pairs.

The yen has had hawkish BOJ repricing, record intervention and unusually strong US support working in its favour, but CHF/JPY is now so stretched that the risk of a counter-trend squeeze is getting harder to ignore.

Franc supported as energy risks ease, yen swings on mixed BOJ messaging

Yen weakness persists across the majors, with USD/JPY, CHF/JPY and AUD/JPY all eyeing further upside despite short-term pullbacks.

USD/JPY steadies ahead of ISM and ADP, while EUR/JPY and CHF/JPY hold firm in bullish trends. Key setups for yen traders into a heavy US data window.

The U.S. dollar and Japanese yen both softened against major peers on Thursday, with the Swiss franc leading gains on trade optimism and haven demand.

The franc’s underperformance has extended into August, with USD/CHF and EUR/CHF finding support ahead of a key U.S. inflation print that could set the tone for the next move.

JPY crosses diverge as USD/JPY bulls eye 149 ahead of US CPI, while CAD/JPY and CHF/JPY signal potential bearish continuation.
The SNB (Swiss National Bank) are expected to hike interest rates tomorrow, which would send their rate above zero for the first time since 2011.
Equity markets were mostly higher overnight as they tracked Wall Street’s last-minute gains.
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