USDCHF and USDJPY: USDJPY continues to push towards 142.00

• On Friday, we saw a tremendous drop in USDCHF from 0.89700 to 0.88750.
• During the Asian trading session, USDJPY recovered to the 143.00 level.

USDCHF chart analysis

On Friday, we saw a tremendous drop in USDCHF from 0.89700 to 0.88750. The pair manages to stop the decline at that level and starts a recovery. During the Asian trading session, USDCHF rallied to the 0.89150 level, only to encounter new resistance there and initiate another pullback. This time we get support at the 0.88900 level.

We need a positive consolidation and a jump to the 0.89200 level for a bullish option. In this way, we would rise above the previous high and form a new one. And in the future, we could see further recovery. Potential higher targets are 0.89300 and 0.89400 levels.

We need a negative consolidation and pullback to the 0.88750 support level for a bearish option. A break below would form a new two-month USDCHF low. Potential lower targets are 0.88700 and 0.88600 levels.

USDJPY chart analysis

During the Asian trading session, USDJPY recovered to the 143.00 level. The previous week, the dollar was retreating against the Japanese yen with the formation of the July low at the 142.00 level. After the morning jump, we now see a pullback to the 142,400 level and a new pressure on the previous low.

We need a break below with continued negative consolidation for a bearish option. This would lead to the formation of a new lower low. Potential lower targets are 141.80 and 141.60 levels. We need a new positive consolidation and a retest of the 143.00 level for a bullish option. Then we need to move above and try to hold our own up there. If we succeed in that, potential higher targets are 143.20 and 143.40 levels.