USD/JPY and USD/CHF Eye Upside as GBP/USD Rally Fades

USD/JPY Technical Analysis

The US dollar initially fell against the Japanese yen in European trading but looks like as we swing into the United States time frame, the dollar is making a little bit of a comeback.

The interest rate differential continues to favor the US dollar over the longer term, and I do like buying dips here whenever I get the opportunity.

The 159 level underneath is a support level, so is the 158.75 level, so I’ll be watching both of those if we do pull back in order to find value.

But I have a longer-term position in this pair already. It looks like we’re just continuing to see carry traders come in and take advantage of the swap at the end of each session, so I remain bullish.

USD/CHF Technical Analysis

The US dollar is a little bit softer against the Swiss franc, but it is currently sitting near a support level in the form of 0.8125.

If we can get a little bit of momentum here, the 0.8050 level is the next area I’ll be watching. And again, this is much like the dollar against the Japanese yen; it’s more about the carry trade for me than anything else.

Short-term opportunities do persist to the upside from what I can see, but ultimately, it’s more of a grinding pair.

GBP/USD Technical Analysis

The British pound is kind of doing a little bit of a round trip during the session, which we’ve seen that 3 days in a row again, and this looks like a pair that might be a little exhausted.

If that’s the case, either sideways action or a pullback makes a certain amount of sense.

If we break below the 1.36 level, then I’m willing to think about going short for a small 40 pip trade maybe. I’m not looking for the world here.

Quite frankly, the British pound is one of my least favorite shorts right now against the dollar, so I’ll have to wait and see if we get any type of momentum.

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