USD/CHF, USD/JPY Price Forecast: May Test More Support Levels
USD/JPY and USD/CHF Outlook
USD/CHF, USD/JPY – Weaker US Dollar Across the Board
Alongside this the Relative Strength Index (RSI) crossed below 50 on both pairs, reflecting the end of the uptrend momentum.
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USD/CHF Daily Price Chart (SEP 20, 2017 – SEP 25, 2019) Zoomed Out
USD/CHF Daily Price Chart (JUNE 15 – SEP 25, 2019) Zoomed IN
Looking at daily chart, we notice yesterday USD/CHF declined to a lower trading zone 0.9758- 0.9860. Today, the price has rebounded from the uptrend line originated from the August 13 low at 0.9659.
Hence, the price maybe on its way for a test of the low end of the zone contingent on clearing the weekly support area and level marked on the chart (zoomed in). See the chart to know more about the lower trading zone/s with weekly support levels to monitor in a further bearish move.
That said, any close above the high end of the zone could send USDCHF towards 0.9930. further close above this level could resume bullish price action towards the vicinity of 1.0008-15. Nonetheless, the weekly resistance levels underscored on the chart should be kept in focus.
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USD/JPY Daily Price Chart (DEC 10, 2017 – SEP 25, 2019) Zoomed Out
USD/JPY Daily Price Chart (JUN 5 – SEP 25, 2019) Zoomed IN
From the daily chart, we notice yesterday USD/JPY moved to a lower trading zone 105.50 -107.30 eyeing a test of the low end of the zone. Although, the price needs first to clear the weekly support level and area underscored on the chart.
Further close below the low end of the zone could press USDJPY towards the vicinity of 104.81-77. See the chart (zoomed in) to know more about the lower trading zone/s with the weekly support level to consider in a further bearish move.
On the flip-side, any close above the high end of the zone could reverse the pair’s direction sending it towards 108.61. In that scenario the weekly and daily resistance area and levels underlined on the chart should be watched closely.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.