Excitement is whipping up in the market about the possibility of another tweak in the BoJ’s YCC policy at its October 31 meeting. This alters the dynamic for CHF/JPY in the near term.

A steady policy decision by the BoJ next week may be needed to propel CHF/JPY onwards to 170 in the weeks ahead. A tweak to BoJ policy would likely slow the ascent of the currency pair which has been bias higher since 2020.