CHF/JPY

The CHF/JPY is the currency pair encompassing Swiss franc of Switzerland (code CHF), and the Japanese yen of Japan (symbol ¥, code JPY).

The pair’s rate indicates how many Japanese yen are needed in order to purchase one Swiss franc.

For example, when the CHF/JPY is trading at 125.00, it means 1 Swiss franc is equivalent to 125 Japanese yen.

The Swiss Franc (CHF) is the world’s sixth most traded currency, whilst the Japanese yen is the world’s third most traded currency.

Having said that, there isn’t a great deal of trade between these two countries. On average the cross possesses rather small spreads ranging from 2 and 4 pips at most forex brokers.

For this reason, the cross lacks broader appeal to many foreign exchange traders.

However, there is enough movement for speculation, since price often ranges daily between 70 and 130 pips.

How to Trade the CHF/JPY

The nature of the Swiss and Japanese economies might seem different from the outset, but actually have some key resemblances.

Both countries, geographically speaking are relatively small, thus don’t possess the natural resources that a Canada or an Australia might have.

Instead, both countries focus their economic efforts on trade and industry.

There are several key economic releases for the CHF/JPY cross, including Producer Price Index (PPI) for Switzerland, which measures a percentage change in the price of goods and raw materials purchased by manufacturers.

With trade central to its economy, any measures regarding either imported and exported goods and services in Japan are also noteworthy.