- On Thursday, the USDCHF retreated to the 0.87770 level, forming a new July low.
- Yesterday, the USDJPY pair retreated to a new July low at the 151.93 level.
USDCHF Chart Analysis
On Thursday, the USDCHF retreated to the level of 0.87770, forming a new July low. After that, the pair stabilized and started a bullish consolidation to the level of 0.88160. During the Asian trading session this morning, we continued to rise to the level of 0.88400. Here, we find support at the EMA 50 moving average and we expect to see further growth on the bullish side.
Potential upside targets are 0.88600 and 0.88800 levels. The 200 EMA of the USDCHF is finding additional resistance at the 0.88800 levels zone. We need a negative consolidation and a drop to the 0.88000 support zone for a bearish option. A revisit of that zone would mean that we are under pressure again and a drop below it to a new daily low could occur. Potential downside targets are 0.87800 and 0.87600 levels.
USDJPY Chart Analysis
Yesterday, the USDJPY pair retreated to a new July low at the level of 151.93. After a short consolidation in that zone, a recovery to the level of 154.00 began. During the Asian session this morning, the movement continued in the range of 153.40-154.10. With the start of the European session, the dollar continues to strengthen and the pair rises to the levels of 154.45. With this, we form a new daily high and expect to start further growth on the bullish side.
Potential upside targets are 155.00 and 156.00 levels. A major resistance awaits us around 156.00 at the 200 EMA. For a bearish option, we need a negative consolidation and a pullback of USDJPY below the support level of 154.00. A further decline below it would confirm the weakness of the dollar and hence head us to the bearish side. Potential downside targets are 153.00 and 152.00 levels.
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