The dollar rose to a one-week high against the yen on Monday, climbing almost 2%, following Japanese Prime Minister Shinzo Abe's call for a fresh round of fiscal stimulus after a victory for his ruling coalition in local elections.
The daily chart of the U.S. dollar/Swiss franc (USD/CHF) currency pair (see chart below) continues to show constructive technical signals as far as the bullish case is concerned. Obviously the biggest risk to any technical outlook is sudden changes in sentiment because of some fundamental stimuli, such as the ongoing Brexit risks and Friday’s US jobs report among others.
The safe-haven yen rose sharply against the euro and dollar while sterling fell to its lowest in more than 30 years today, as currency markets fretted about more signs of economic stress stemming from Britain's decision to leave the European Union.
The yen climbed against the dollar today, boosted by the uncertain risk environment left by Britain's shock vote to leave the European Union as well as the view that the U.S. Federal Reserve will now hold off from raising interest rates.