USD/CHF Strength vs USD/JPY Weakness Ahead of CHF/JPY Resistance
The US dollar's performance across major currencies has been mixed lately, with USD/CHF retaining a strong bullish structure while momentum in USD/JPY begins to fade. CHF/JPY may provide an additional clue as its countertrend rally approaches resistance levels.
A look at the daily charts of various FX majors shows that EUR/USD and GBP/USD have nudged their way to an eight-day low, but downside volatility is lower than during previous selloffs. AUD/USD tested 71c after two shooting star candles, while NZD/USD formed a volatile bullish outside day.
USD/JPY has formed a solid bounce in line with the author's bullish bias from the lows around 153, but Monday's bullish inside day had a range less than half that of the prior day. The four-hour chart shows a potential continuation triangle, suggesting room for another spike higher.