USDCHF and USDJPY: USDCHF is in a big pullback to 0.89000
- Yesterday we saw a big pullback in USDCHF from 0.90550 to 0.8900 level.
- During the Asian session, USDJPY gains support at the 140.00 level.
USDCHF chart analysis
Yesterday we saw a big pullback in USDCHF from 0.90550 to 0.8900 level. During the Asian session, the pair continued to move around this June low. The pressure on the dollar is still present, which could lead to a continued retreat and the formation of a new lower low. Potential lower targets are 0.88900 and 0.88800 levels. We need a new positive consolidation and a move to the 0.89400 level for a bullish option.
Thus we would have moved from the previous low. Then we need a breakout above and a hold up there. With the next bullish impulse, we would initiate the further recovery of USDCHF. Potential higher targets are 0.89600 and 0.89800 levels.
USDJPY chart analysis
During the Asian session, USDJPY gains support at the 140.00 level. After that, we see a strong bullish impulse and a jump to the 140.80 level. The reason for that jump is the news from the BoJ about the interest rate remaining at -0.10% and the rate remained unchanged compared to previous data.
The graph shows the continuation of growth and the formation of today’s high at the 141.40 level. The pair is now making a minor pullback to potential support at the 141.00 level. If we fail to hold on there, we could slide down and look for support at lower levels. Potential lower targets are 140.80 and 140.60 levels.