USDCHF is in consolidation; and USDJPY is above 146.50

• The previous week was positive for USDCHF, with a high forming at the 0.88200 level.
• Last week we saw a tremendous pullback of USDJPY from 147.50 to 141.62 level.

USDCHF chart analysis

The previous week was positive for USDCHF, with a high forming at the 0.88200 level. During the Asian session, we saw a slight pullback to the 0.87850 level, where we gained support and initiated a new bullish impulse. We now need to move above 0.88100 to release the bearish pressure. After that, we can test last week’s high again.

Potential higher targets are 0.88300 and 0.88400 levels. We need a negative consolidation and a drop below the 0.87800 level for a bearish option. This would form a new daily low and confirm the bearish presence on the chart. Potential lower targets are 0.87700 and 0.87600 levels. Additional support is the EMA50 moving average around the 0.87700 level.

USDJPY chart analysis

Last week we saw a tremendous pullback of USDJPY from 147.50 to 141.62 level. The fall was stopped there, and since then we have been in a bullish consolidation that has continued today. This week’s high is currently at the 146.50 level, and expectations are that we will see a continuation on the bullish side. Additional pressure in this zone creates the EMA50 moving average, which could negatively affect further movement.

The breakout above tells us that USDJPY has the strength to start a further bullish recovery. Potential higher targets are 147.00 and 147.50 levels. We need a negative consolidation and price pullback below the 145.50 level for a bearish option. Doing so would take the first step towards the bearish side. Potential lower targets are 145.00 and 144.50 levels.