The cheapest money in the world came from Japan for a generation, however there are now clear signs that this era is  coming to an end. Is Switzerland about to assume this role?

Japan’s 10-year government bond yield climbed to around 2.73% for the week closing the 17th.July 2026. Four years ago in July 2022 it stood at 0.25%. The yield on Switzerland 10Y Bond Yield stood at 0.43% on July 17, 2026. 

The question now arises as to how the CHF/JPY cross rate will develop. Ever since the year 2008, shorting the yen has been a no brainer, but now there is an interest differential of 2.3% in favour of the Japanese Yen.

There are a few technical signs showing up which could favour a certain appreciation of the JPY against the CHF. The rising 40 week moving average is at 198.83 and closing in on the current cash price of 201.24. The Fibonacci 100% upside projection target of 201.75, based on the 74.67 to 138.21 range traded between December 2008 and January 2015 is also flirting with the current cash price. 

It would therefore come to no surprise if the CHF/JPY cross were to retrace towards the 180 level in the coming months.

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