same thesis, better price short CHF/JPYSwiss Franc vs. Japanese YenFX:CHFJPYdiegomurphyvJapan aims to encourage its Government Pension Investment Fund, the world's largest pension fund to increase investment in domestic assets, Finance Minister Satsuki Katayama said on Friday. The fund held assets worth 293.4 trillion yen ($1.8 trillion) at the end of December, meaning its allocation decisions carry significant weight in global markets; the announcement drove up both the yen and Japanese government bonds. In general, the JPY tends to strengthen in July and August. I believe that in the current context, the market is bearish due to Japan's fiscal policy—which is why we see Japanese yields pricing in a higher risk premium—but this narrative may already be priced in. Regarding the CHFJPY pair, there are two major forces at play: the SNB does not want a strong franc, while the MoF does not want a weak yen. Although there are no specific implied levels and the pair could continue to rise, we at least know the intentions of each key player. The carry is now positive for a short position, with the BoJ at 1.00% versus the SNB at 0%. This marks the first time that shorting CHFJPY earns carry rather than incurring a cost.