Swiss Franc / Yen - CHF/JPY

The fluctuations of the CHF/JPY cross seem to be very little influenced by the traditional “defensive security” status of the Swiss Franc, a currency which external value against most of the other currencies tends to increase in case of stagnation or recession of the world economy.

The monetary policy with very low interest rates ran by the Japanese monetary authorities during most of the year 2000, and the economic health of Japan, have a clear influence on the fluctuations of the CHF/JPY cross.

Since 2005, we have observed similarities of trends and reversals of these trends between the fluctuations of the EUR/JPY cross and the fluctuations of the CHF/JPY. We can say that the yen was the conductor.

With the exchange value CHF/JPY = 87 in January 2005, a bullish movement led the cross to the value CHF/JPY = 90 in July 2005. This bullish movement maintained with a quite slow rhythm until June 2007, when the cross reached CHF/JPY = 100.

Relative higher level of the EUR/JPY and USD/JPY cross were observed on the Forex during the same period.

Exactly as towards the Euro, a break of the yen depreciation against the Swiss Franc happened during the Summer 2007 (CHF/JPY = 93 in August 2007), then the cross increased again and lasted until the higher of June 2008 observed at CHF/JPY = 104.

In the context of the worsening of the world financial and stock-exchange crisis, the Yen fast took back 30% of its  value against the euro and the Japanese currency re-appreciated by nearly 26% against the Swiss Franc in few weeks: CHF/JPY = 77 in November 2008 and CHF/JPY=78 on the Forex on February 2009.

An adjustment in favor of the Swiss Franc happened from the end of the first quarter of 2009, and the cross was superior to CHF/JPY = 90 at the beginning of September 2009 and this adjustment died down: CHF/JPY = 89,342 by mid-January 2010.