USDCHF Analysis: Rising to 0.88900 and its Implications

• USDCHF stopped the previous bullish rally on Friday at the 0.88930 level.
• This morning, we saw the USDJPY fall to the 149.80 level.

USDCHF chart analysis

USDCHF stopped the previous bullish rally on Friday at the 0.88930 level. From that point, the pair starts to retreat and closes the day at the 0.88400 level. During the Asian trading session, we saw a continuation of the bearish consolidation to support at the 0.88050 level. From there, the pair starts a bullish consolidation and returns to the 0.88400 level. If we manage to move above, it could trigger a strong bullish trend.

Potential higher targets are 0.88600 and 0.88800 levels. For a bearish option, we need a pullback to the 0.88100 level. This is where we come across the EMA200 moving average. Falling below increases the chances of moving even lower to the bearish side. Potential lower targets are 0.87900 and 0.87800 levels. At the 0.87800 level, we would test last week’s support zone.

USDJPY chart analysis

This morning, we saw the USDJPY fall to the 149.80 level. After that, in the Asian trading session, the pair quickly consolidated and returned to the bullish side above the 150.00 level. We are now at the 150.40 level and expect to see a further continuation and a visit to higher levels. Potential higher targets are 150.60 and 150.80 levels. USDJPY has even greater resistance at the 151.00 level.

We need a pullback below the 150.00 level for a bearish option first. That would bring us close to testing this morning’s low. A new visit to that zone would increase the pressure on USDJPY, and a break below and the formation of a new low could occur. We would also be under pressure from the EMA200, which would only intensify the bearish pressure and take us away from the bullish trend. Potential lower targets are 149.80 and 149.60 levels.