YIELD DIFFERENTIALS IN CHFJPY

Since Yields are the Fundamentals Drivers of Currencies, currently looking at the yield differential between CHF and JPY. You can see that the 2-year and 10-year yield differentials are already falling heavily in favor of JPY, so you could see aggressive pricing in the pair.

The risk that i see is jpy interest is lower than chf and the volatility is very low which is
good for carry trades, so when volatility picks up in the broader market than this pair could really move until then we need to be careful with this and watch what Bank of Japan does
with the interest rates.
For me, i would be selling on the rallies up into nice technical levels and manage risk.
Chart PatternsTrend Analysis

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