The Swiss National Bank surprised everyone with a 50 basis point hike this week while the Bank of Japan stuck to its policy of yield curve control. The relative shift is why MUFG Research made the CHF/JPY pair its trade of the week.

They recommend buying the pair at 139 with a target of 144 and a stop at 136.50.

“We are recommending a long CHF/JPY trade to reflect the recent widening divergence in monetary policy stances between the BOJ and SNB. WHile the BOJ continued to keep loose policy settings in place, the SNB has just embarked on their own rate hike cycle,” MUFG noted.

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