USDCHF and USDJPY: USDJPY is retesting the EMA 200

• On Friday, October 18, USDCHF rose to 0.86699, a new monthly high
• Last week, USDJPY bounced back above the 150.00 level again

USDCHF chart analysis

On Friday, October 18, USDCHF rose to 0.86699, a new monthly high. We did not have enough momentum to stay on the bullish side and a pullback to 0.86450 was initiated. During this morning’s Asian trading session, the pair moved in the 0.86450-0.86600 range. USDCHF is still under bearish pressure at the daily open level and the EMA 50 moving average.

This could trigger a new impulse below, and a new daily low formed. With that step, we confirm the bearish momentum and continued pullback until the next support. Potential lower targets are 0.86400 and 0.86300 levels. For a bullish option, we need a positive consolidation and a jump to the 0.86600 level. After that, we expect an impulse above and a breakthrough of this morning’s movement range. With the new momentum, we expect the continuation of the bullish trend. Potential higher targets are 0.86700 and 0.86800 levels.

USDJPY chart analysis

Last week, USDJPY bounced back above the 150.00 level again. After that, on Friday, October 18, the pair starts to retreat from that zone to the 149.40 level. During this morning’s Asian trading session, we saw a continuation of the pullback to the 149.00 zone, where the EMA 200 moving average awaited us. Very quickly, USDJPY stabilized down there and started a bullish consolidation above the daily open level of 150.00.

A daily high was formed there, and now we are trying to hold it there in order to continue on the bullish side. Potential higher targets are 150.20 and 150.40 levels. For a bearish option, we need a negative consolidation and a new USDJPY pullback below the daily open level. This would put the pair back on the negative side and pressure it to initiate a new pullback to 149.00 and EMA 200. This time, we expect a break below and a further decline to a new low. Potential lower targets are 148.80 and 148.60 levels.

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