USDCHF and USDJPY: USDCHF is back above 0.85000 level

• The pair USDCHF managed to gain support above 0.84000 last week and started a recovery that continued this week.
• This week, we are looking at a USDJPY recovery above the EMA50 moving average.

USDCHF chart analysis

The pair USDCHF managed to gain support above 0.84000 last week and started a recovery that continued this week. During the Asian trading session, the pair moved around the 0.85000 level, and in the EU session, we saw a break above and a jump to the 0.85350 level. The positive for the dollar is that it has also crossed the EMA50 moving average. The current picture tells us that we can expect a further continuation to the bullish side. Potential higher targets are 0.85400 and 0.85600 levels.

For a bearish option, we need a negative consolidation of the retreating USDCHF below the 0.85000 level. After that, we would again be below the EMA50 moving average, increasing the bearish pressure. The next important support is in the zone around the 0.84600 level; if it does not hold, the pair will have the opportunity to continue its retreat. Potential lower targets are 0.84400 and 0.84200 levels.

USDJPY chart analysis

This week, we are looking at a USDJPY recovery above the EMA50 moving average. During the Asian trading session, the pair hovered around 142.00 levels, and then we saw a break above and now up to 142.75 levels. The dollar has managed to recover since the beginning of the year, and so far, we see no signs of weakness. Potential higher targets are 143.00 and 143.50 levels.

We need a negative consolidation and a return below the EMA50 and 142.00 levels for a bearish option. Such a move would strengthen the bearish momentum and see a further pullback to the next support. Potential lower targets are 141.50 and 141.00 levels. Last week’s low was at the 140.25 level.