The USDJPY parity continues to follow a negative trend outlook with the Yen effect, which has recently gained value due to the weakening of the Dollar and the risk factors on the agenda. The USDJPY parity, which attracted the attention with the prices it has made on the negative side as it broke down 110.88 level, carried the related decreases up to 106.85 level.
Main Scenario: The USDJPY parity continues its negative outlook under the 108.58 barrier, the top of the downtrend. If the parity continues to trend expectations, it can be retracted towards 108.85 and 106.45 support. In particular, the downward trend of the trend bottom 106.45 may strengthen the possibility of a withdrawal towards the support of the 2019 bottom point 104.72. Otherwise, the recovery can be traced back to the 108.58 barrier. The possible response levels before the 108.58 barrier were recorded as 107.85.
Alternative scenario: Movements over the 108.58 barrier should be followed in order to end the negative expectation for USD JPY parity and a positive sentiment should be placed in the forefront. However, with this condition, new pricing towards 109,70 and 110,23 levels, especially 109,12, can be monitored.
Support: 106,85 – 106,45 – 105,80
Resistance: 107,85 – 108,58 – 109,12