CHFJPY (CHFJPY^)

Pairing – The amount of Japanese Yen (JPY) that one can buy for every Swiss franc (CHF).

Position

CHF – World’s seventh most traded currency

JPY - World’s third most traded currency

Important factors

• Reserve – These two currencies are arguably the two most important reserve currencies, meaning in times of turmoil or economic uncertainty, many investors will choose to buy up both, causing prices to rise significantly. However, the Bank of Japan has been known to intervene to limit the possibility to do this if the price of the yen grows too strong.
• Commodities – There are some similarities in the commodities that affect these two currencies, but also some differences. The franc is heavily connected with certain commodity markets, particularly gold and oil, where the yen is affected more by coal and aluminium, as well as oil, and base metals used in the automotive industry.
• Economy – The economic performances of both nations can have a major impact on these currencies, inflation and unemployment, as well as the economic performance of the countries globally can make changes to the pairing.