USDCHF and USDJPI: USDCHF continues to slide below 0.84000

USDCHF chart analysis

Pair USDCHF continued its retreat this week, going down to 0.83326 levels. This low was formed yesterday, after which we saw a recovery to the 0.84487 level. We encounter new resistance in that zone and the pair starts to pull back during the Asian trading session. We are currently below 0.84000 and on our way to the previous low. Failure to stay above the zone around the 0.83500 level will lead to a fall below and the formation of a new low.

Potential lower targets are 0.83000 and 0.82500 levels. We need a positive consolidation and a return above the 0.84500 level for a bullish option. Then, we would have to hold on up there and form a bottom from which we would start further recovery. Potential higher targets are 0.85000 and 0.85500 levels.

USDJPY chart analysis

Yesterday, we saw USDJPY drop to a new low at 140.25. The pair successfully stopped there and initiated a bullish consolidation. During the Asian trading session, we see a break above 141.50 and a jump to 141.90. If the current bullish consolidation continues, we are getting closer to crossing above the 142.00 level. Potential higher targets are 142.50 and 143.00 levels.

In the zone around 142.50 levels, the pair encounters the EMA50 moving average, and there, we expect increased resistance to a bullish recovery. For a bearish option, we need a pullback to the 141.00 level. There, we would be under pressure to continue below 140.50 and test the previous low. Potential lower targets are 140.00 and 139.50 levels.

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