USDCHF continues to consolidate while USDJPY recovers
This week, we have seen a stable movement of USDCHF in the 0.88150-0.88600 range.
During the first two days of this week, USDJPY continued the bearish trend from the previous week to support at the 147.15 level.
USDCHF chart analysis
This week, we have seen a stable movement of USDCHF in the 0.88150-0.88600 range. Although we remain in the zone of potential support, the dollar managed to stop the decline, at least for a while. On the upside, we are approaching the EMA50 moving average, which could cause a new, stronger impulse and correction on the chart. For now, we remain low, and the pressure could easily break through the support level and form a new low.
Potential lower targets are 0.88000 and 0.87800 levels. For a bullish option, we need positive consolidation and growth of USDCHF to 0.88800 level. This is where we would test the EMA50 moving average, and we hope to see the break above and embark on a continued recovery. Potential higher targets are 0.89000 and 0.89200 levels.
USDJPY chart analysis
During the first two days of this week, USDJPY continued the bearish trend from the previous week to support at the 147.15 level. The pair managed to stop the decline at that level and initiate a bullish consolidation that continues today. We are climbing to the 149.75 level and are pausing here to consolidate before continuing further to the bullish side. An additional break in this zone creates the EMA50 moving average, and we must break above it if we want to continue the recovery.
Potential higher targets are 150.00 and 150.50 levels. We need a negative consolidation and a drop in USDJPY to the 149.00 support level for a bearish option. A break below this level leads to the formation of a new low, and thus, we get a confirmation of bearish momentum to continue to the bearish side. Potential lower targets are 148.50 and 148.00 levels.
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