USDCHF slides below 0.88000 and USDJPY falls to 149.00
- The pair USDCHF continues its retreat this week, descending to a new low at the 0.88000 level.
- After consolidating USDJPY around the 149.50 level for much of last week, we saw a drop below this morning.
USDCHF chart analysis
The pair USDCHF continues its retreat this week, descending to a new low at the 0.88000 level. In these last days of the month, the dollar continues to remain under pressure and on the defensive. Based on that, we expect to see a continuation to the bearish side and the formation of a new low. Potential lower targets are 0.87800 and 0.87600 levels.
For a bullish option, we must first go back above the 0.88400 level and initiate further positive consolidation. In the zone around the 0.88600 level, we encounter additional resistance in the form of the EMA50 moving average. A break above means that we are on track for a further dollar recovery. Potential higher targets are 0.88800 and 0.89000 levels.
USDJPY chart analysis
After consolidating USDJPY around the 149.50 level for much of last week, we saw a drop below this morning. During the Asian trading session, the pair was under pressure in the zone around 149.50 levels. We had additional resistance in the EMA50 moving average, which caused the USDJPY to slide down and form this week’s low at 148.90.
We are now hovering around the 149.00 level and remain under pressure to continue on the bearish side. Potential lower targets are 148.50 and 148.00 levels. We need a positive consolidation and a return above the 149.50 level for a bullish option. We would retest the EMA50 moving average and have to cross it to get rid of the bearish pressure. Potential higher targets are 150.00 and 150.50 levels.
