USDCHF and USDJPY: USDJPY retreated below 133.50

• Yesterday’s attempt by USDCHF to start a significant bullish recovery was stopped at the 0.89270 level. 
• During the Asian trading session, USDJPY continues to retreat below the 134.00 level.

USDCHF chart analysis

Yesterday’s attempt by USDCHF to start a significant bullish recovery was stopped at the 0.89270 level. During the Asian trading session, the pair pulled back and began a bearish consolidation. In the EU session, we see a continuation of the pullback to the 0.88700 level.

After that, USDCHF recovered a little to the 0.88890 level, after which it managed to escape from the uncomfortable position. We need a new positive consolidation and a move to the 0.89300 level for a bullish option. So we would go back to testing the previous high and look for a break above to continue the recovery. Potential higher targets are 0.89400 and 0.89500 levels.

USDJPY chart analysis

During the Asian trading session, USDJPY continues to retreat below the 134.00 level. We are now at the threshold of 133.30 levels, and the current bearish impulse tells us that we could see further descent and the formation of a new seven-day low. Potential lower targets are 133.15 and 133.00 levels.

We need a new positive consolidation and a return above the 134.00 level for a bullish option. Then we would return above the EMA50 moving average, which could further strengthen our position and the bullish trend. Potential higher targets are 134.25 and 134.50 levels.