The Hidden Formula for Trading CHFJPY Using Factory Orders

Why Most Traders Get CHFJPY Wrong (And How You Can Avoid It)

Imagine this: You’re at a restaurant, ready to order a steak. But instead of telling the waiter your preference, you just let them decide. Maybe you’ll get a juicy ribeye, or maybe you’ll end up with a plate of soggy fries. This, my friend, is how most traders approach CHFJPY—without a clear strategy, relying on luck rather than precision.

Now, let’s change that. Today, we’re diving into how factory orders impact CHFJPY price movements and uncovering game-changing strategies to trade this exotic pair with precision.

Factory Orders: The Underappreciated Power Move in Forex

Most traders obsess over GDP, NFP, and CPI, completely ignoring factory orders—an economic indicator with the subtle power of a chess grandmaster.

What Are Factory Orders?

Factory orders measure the total value of new purchase orders placed with manufacturers. They signal demand for goods, which directly impacts production, employment, and overall economic growth.

Why Should CHFJPY Traders Care?

The Swiss Franc (CHF) and Japanese Yen (JPY) are both safe-haven currencies, meaning they thrive in uncertain market conditions. But here’s the twist—when Japan’s factory orders spike, it suggests increased industrial activity, which strengthens the Yen. On the flip side, strong Swiss factory orders signal growth in Switzerland’s high-value manufacturing sector, often driving CHF higher.

The Overlooked Correlation

Traders assume CHFJPY moves only based on risk sentiment, ignoring economic fundamentals. But historical data shows that factory orders correlate with medium-term trends in CHFJPY.

For example, in Q3 2023, a 7.8% drop in Japan’s factory orders caused the Yen to weaken, driving CHFJPY up by over 2.1% in a week. Traders who ignored this lost money, while those who anticipated it made bank.

How to Predict CHFJPY Moves Using Factory Orders

1. Compare Swiss vs. Japanese Factory Orders

• When Swiss factory orders rise faster than Japanese factory orders, CHFJPY tends to rise.
• When Japanese factory orders outpace Swiss orders, CHFJPY often falls.

???? Pro Tip: Check official factory order data from Switzerland’s Federal Statistical Office and Japan’s Cabinet Office to stay ahead.

2. Pair Factory Orders with Technical Analysis

• If factory orders suggest CHFJPY will rise, confirm the trend with support/resistance levels and moving averages.
• If the fundamentals and technicals agree—boom! That’s your golden trade setup.

3. Use Market Sentiment as a Confirmation Tool

• Safe-haven flows can override factory order signals in extreme risk conditions.
• Always cross-check with bond yields—if JPY bond yields rise, it signals Yen strength regardless of factory orders.

The Secret CHFJPY Trading Strategy Using Factory Orders

Step 1: Track Upcoming Factory Order Releases
Use economic calendars (like StarseedFX’s forex news section) to know when Swiss and Japanese factory orders are scheduled.

Step 2: Compare Historical Trends

• Analyze past CHFJPY reactions to similar factory order reports.
• Identify if CHFJPY tends to spike immediately or reacts with a lag.

Step 3: Find Confluence with Technical Analysis

• Use Fibonacci retracements to find entry points.
• Monitor RSI levels—if RSI is oversold while factory orders indicate CHF strength, a strong buy opportunity is forming.

Step 4: Confirm with Market Sentiment

• Use StarseedFX’s community insights to gauge expert opinions.
• Watch for big players like hedge funds increasing CHFJPY positions.

Step 5: Execute with Smart Risk Management

• Set stop losses just below key support zones.
• Keep risk per trade under 2% of your capital.

Final Thoughts: Mastering CHFJPY Like a Pro

Most traders ignore factory orders, leaving profitable CHFJPY moves on the table. Now that you know the power of this indicator, you have an edge over 95% of traders.

Ready to take your trading to the next level? Access StarseedFX’s expert insights, free trading tools, and community discussions to stay ahead of the market.

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Image Credits: Cover image at the top is AI-generated