The CHF/JPY pair is the abbreviated term used for the Swiss franc and Japanese yen. This pair doesn't have any nickname. Before we get into the particulars, what exactly does CHF/JPY rate mean? The exchange rate tells you how many Japanese yen (the quote currency) are required to purchase one Swiss franc (base currency). For example, if the pair is trading at 108.84, it means it takes 108.84 Japanese yens to buy 1 Swiss franc.

Breaking Down "CHF/JPY"

The Swiss franc is a reserve currency. Therefore its value surges during times of uncertainty as investors seek safe-haven options. The exchange rate of Swiss Franc is also determined by economic factors such as interest rates, trade balance, and inflation, but the prices of gold, oil, and coal also tend to be important factors.Whereas, the Japanese Yen is classified as a safe-haven currency. Before the financial crisis of 2008, several investors would take advantage of ultra-low interest rates from the Bank of Japan to borrow massively in Yen and invest the money abroad. However, the interest rate differential among the central banks of the BOE and Japan has squeezed significantly considering the global economic downturn, pointing to the unwinding of the carry trade as the value of the yen rose.USD/JPY has traditionally been linked with the carry trade, an investment mechanism that includes speculators borrowing money at low-interest rates and purchasing higher-yielding assets in a different currency.The Swiss Franc vs. the Japanese Yen.: After reaching its low in 2008 this pair has steadily traded bullish mainly due to aggressive Japanese monetary rate cuts. Besides, due to low-interest rates and different financial properties, these currencies are considered to be safe-haven and funding currencies.

What Determines the EUR/CHF Exchange Rate?

The Swiss National Bank's or SNB’s main purpose is setting Switzerland's monetary policy and it is an independent central bank. Its works to maintain price stability in the country and create an economic environment conducive to economic growth and development for Switzerland. Moreover, it's also responsible for issuing Swiss francs. Notably, investors generally consider Swiss francs as a safe-haven asset and purchase them as a way to protect their money from risks related to economic turmoil.The Bank of Japan (BOJ) headquarters are located in the Nihonbashi business district in Tokyo. The BOJ is the Japanese central bank, which is liable for issuing and managing currency and treasury securities, maintaining monetary policy and, the stability of the Japanese financial system, and also offering settling and clearing services. Like most other central banks. The BOJ also compiles and aggregates economic data and produces economic research and analysis.

Economic Events:

The movement in the Swiss Franc and Swiss National Banks determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the Swiss Franc and Japanese Yen, causing fluctuations in the CHF/JPY exchange rate.

Major Economic Events:

Gross Domestic Product – The Gross Domestic Product is the central measure of economic growth in the region.Employment Change – Both currencies are sensitive to changes in employment, as slacks in the labor market cause a drop in Inflation rates.Consumer Price Index – Since one of the goals of SNB and BOJ is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central bank’s target, the central banks could make use of their monetary policy tools to keep inflation in check. Political announcements & natural disasters – Besides the scheduled economic events, political elections, new systems, wars, terror incidents, natural calamities, etc. can all cause severe variations within the CHF/JPY.Trade Balance – The Japanese economy is massively export dependent. Falling export numbers could lead to a decline in economic activity.Tankan Surveys – These reports survey managers from a broad range of industries, questioning them on their views of the economy. The rising sentiment (scores above 0.0) indicate that Japanese businessmen expect business activity to pick up. Scores below 0.0 suggest otherwise.

Currency Correlations

Correlation is merely a mutual relationship or connection between two or more things.Positive correlation – The positive relationship merely is when pairs move in tandem with each other.In the forex world, the CHF/JPY - EUR/JPY, CHF/JPY - SEK/JPY, and CHF/JPY - NOK/JPY.Negative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction, For example, CHF/JPY - USD/MXN, CHF/JPY - USD/CNH, and CHF/JPY - USD/NOK.Gold & Japanese yen: This is why there is often a positive connection between the Japanese money and gold: both properties have less than zero connection with the greenback and both are taken into account as safe places of investment. However, the relation is not an error with less connection, as one can see in the map under. This is because gold is not merely a that possibly taking place in addition to the U.S.dollar, but also to the current money-related system based on Fiat money used in countries. as an outcome of that, it some cases the Japanese money and the dollar both come out badly (or profit) get onto land against gold.

CHF/JPY Specifications

The CHF/JPY is traded in amounts denominated in the US Dollar. Standard lot Size: 100,000 Mini lot size: 10,000 One pip in decimals 0.0001 Pip Value: $9.29