USDCHF and USDJPY: USDJPY is using a new support to recover
- During this morning’s Asian trading session, USDCHF encountered resistance at the 0.85100 level
- During this morning’s Asian trading session, USDJPY behaved a little unpredicted
USDCHF chart analysis
During this morning’s Asian trading session, USDCHF encountered resistance at the 0.85100 level. We saw a slight pullback to the 0.84850 level. New support at that level brought us back above the EMA 20 and within reach of the 0.85000 level. We need stronger bullish momentum for a more concrete move above a new daily high. Potential higher targets are the 0.85200 and 0.85300 levels.
For a bearish option, we need a negative consolidation and a drop below the 0.84800 level. We then move below the EMA 50 moving average, and it moves to the bearish side. USDCHF would then have to start a retreat and hit a new lower support level. Potential lower targets are 0.84700 and 0.84600 levels. Today is a holiday in the US, and we expect a decrease in market volume.
USDJPY chart analysis
During this morning’s Asian trading session, USDJPY behaved a little unpredicted. First, we saw a jump to 146.60, then a pullback to 145.80. Soon, we got new support at that level and started a new bullish consolidation. This consolidation broke the previous high and formed a new one at 146.85. We are currently pausing there and pulling back slightly to 146.65. We expect the pair to get new support soon and start a continuation of the recovery on the bullish side.
Potential higher targets are 147.00 and 147.20 levels. For a bearish option, USDJPY would have to pull back to the 146.20 daily open price. The inability to hold there will lead to the initiation of bearish consolidation and testing of the Asian low. New pressure on that zone could influence us to slide below to a new low and thus confirm that the USDJPY is retreating. Potential lower targets are 145.60 and 145.40 levels.
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