Forex Market: CHF/JPY daily forecast

During Friday’s trading session CHF/JPY traded within the range of 112.48-112.94 and closed at 112.55, losing 0.19% for the day.

At 8:44 GMT today CHF/JPY was gaining 0.09% for the day to trade at 112.65. The pair touched a daily high at 112.66 at 8:46 GMT.

Fundamental view

Japan

The rate of unemployment in the country probably remained unchanged at 3.5% in June. It represents the percentage of the eligible work force that is unemployed, but is actively seeking employment. A person who is not classified as employed or unemployed is excluded from the statistics. People, who have been laid off and are awaiting to be hired again, are also classified as unemployed. In case the unemployment rate met expectations or even fell further, this would have a bullish effect on the yen. Japan Statistics Bureau will release the official employment data at 23:30 GMT.

Overall Household Spending in Japan probably decreased at an annualized rate of 3.8% in June, according to the median forecast by experts, following another drop by 8.0% in the prior month. Spending levels indicate how strong consumer confidence in the country is. Household Spending is also a major component of the Gross Domestic Product of the nation. In case the indicator dropped at a lesser pace than anticipated, this would provide support to demand for the national currency. The Ministry of Internal Affairs and Communications is to publish the official report at 23:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 112.66. In case CHF/JPY manages to breach the first resistance level at 112.83, it will probably continue up to test 113.12. In case the second key resistance is broken, the pair will probably attempt to advance to 113.29.

If CHF/JPY manages to breach the first key support at 112.37, it will probably continue to slide and test 112.20. With this second key support broken, the movement to the downside will probably continue to 111.91.

In weekly terms, the central pivot point is at 112.62. The three key resistance levels are as follows: R1 – 112.99, R2 – 113.43, R3 – 113.80. The three key support levels are: S1 – 112.18, S2 – 111.81, S3 – 111.37.