USDCHF and USDJPY: USDJPY bounces back above 138.00

• During the Asian trading session, USDCHF continues to retreat below the 0.89800 level.
• During the Asian trading session, USDJPY continues to be bullish from last week. 

USDCHF chart analysis

During the Asian trading session, USDCHF continues to retreat below the 0.89800 level. We find support at the 0.89400 level, and the decline is stopped for now. The pair recovered to the 0.89550 level, and we are looking for the next support at the 0.89600 level.

For a bullish option, we need a positive consolidation and a further continuation of the recovery to the 0.89800 level. Additional resistance at that level is the EMA50 moving average, and we need a break above it to continue the dollar’s rise. Potential higher targets are 0.90000 and 0.92000 levels.

USDJPY chart analysis

During the Asian trading session, USDJPY continues to be bullish from last week. We got support at the 137.50 level, and since then, we are back in a bullish trend. We are now above the 138.00 level and on our way to the 138.50 level. If today’s bullish consolidation continues, the pair will have the opportunity this week to climb and test last week’s high at the 138.75 level.

We need a negative consolidation and pullback to the 137.50 support level for a bearish option. A break below would mean a weakening of the dollar and a drop to a new low. Potential lower targets are 137.00 and 136.50 levels.