RBC Capital Markets remains downbeat on CHF, but positive on JPY, and would use any bounces in EUR/USD as an opportunity to sell CHF/JPY.

It first suggested short CHF/JPY trades back in early November, and notes the spot rate is now 8% lower.

But cautions that much of this fall has been down to the tumble in EUR/USD. Adds with EUR weakness concentrated in a period of unusually thin liquidity, the risk of a EUR/USD bounce is significant.

While that makes the case for CHF/JPY selling less compelling, the bank says any bounce provides an opportunity to resell CHF/JPY.