- During the Asian trading session, USDCHF managed to rise to only 0.88225.
- On Friday, we saw USDJPY hit a new weekly high at 150.77.
Chart analysis of the US dollar against the Swiss franc
During the Asian trading session, USDCHF managed to rise to only 0.88225. From there, the bearish consolidation began. The pair fell below the Asian bottom, which increased pressure on the dollar. This leads to a drop below the 0.88000 level and the EMA200 moving average. The fact that we are below the moving average that supported us in the previous weeks adds to the pressure.
Possible lower targets are 0.87900 and 0.87800 levels. For the bullish option, we need to see USDCHF back above the 0.88000 level. Hence, we should settle there to try to retest the resistance at 0.88200. With the breakout above, we would take the pressure off significantly and could begin to recover further. Possible higher targets are 0.88300 and 0.88400 levels.
USDJPY chart analysis.
On Friday, we saw USDJPY hit a new weekly high at 150.77. They stopped there, and the pair spent the rest of Friday falling back to the support level at 150.30. After receiving support, we saw a recovery to the 150.50 level. During the Asian trading session, fresh inflow into the dollar pushed us to test support at the 150.30 level. We stay above again and start a new recovery by breaking the Asian top and forming a new top at level 150.67.
Now, it is important for us to stay above the 150.50 level and thus form the bottom from which further growth will start. Possible higher targets are 150.80 and 150.90 levels. We need a pullback and new test at 150.30 for a bearish option. A break below the formed daily low confirms the bearish momentum. Possible lower targets are 150.20 and 150.10 levels. Additional support is EMA200 at 150.10; There, we expect the bearish option to stop or slow down.
