USDCHF and USDJPY: USDCHF has a chance to start a recovery
During this morning’s Asian trading session, USDCHF moved in the 0.89400–0.89600 range. The pair USDJPY continued its retreat on Monday, forming a new low at 160.26.USDCHF chart analysis
During this morning’s Asian trading session, USDCHF moved in the 0.89400–0.89600 range. Now, in the EU session, the pressure is on the upper level of this range, and we could see a break above to a new high. With this, we will form a new daily high and thereby confirm a slight bullish momentum. Potential higher targets are 0.89600 and 0.89800 levels. Climbing into the zone 0.84750-0.84800, we encounter the EMA 50 and EMA 200 moving averages.
If we could manage to move above those resistances, we would get their support to continue on the bullish side. For a bearish option, we need a USDCHF pullback below this morning’s support at the 0.89400 level. Thus, the pair moves to a new weekly low and confirms the continuation of the bearish option. Potential lower targets are the 0.89200 and 0.89000 levels.
USDJPY chart analysis
The pair USDJPY continued its retreat on Monday, forming a new low at 160.26. After receiving new support, the pair started a bullish consolidation, recovering to 161.10. At this level, we encounter resistance and form a lower low compared to Friday’s. If the resistance holds, a new bearish consolidation will be initiated with the aim of forming a new lower low.
Potential lower targets are the 160.20 and 160.00 levels. USDJPY would have to break above today’s high for a bullish option. A jump above the 161.40 level would push us to a higher low compared to last week’s. This gives us an indication that we could see a continuation on the bullish side. Potential higher targets are the 161.60 and 161.80 levels.
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