Although ECB President Draghi’s interest rate cut signal, the Fed’s ability to keep a possible discount on interest rate on the agenda allowed the euro to create a strong pricing behavior. Although the reliable currency Yen has strengthened due to risk factors, the recent positive trend of the Euro has enabled the Euro to become stronger in the Euro & Yen struggle. The EURJPY parity continued upward trend has also helped us to see the outcome of this struggle clearly.
Main Scenario: If the EURJPY parity remains above 122.33, the lower point of the bullish trend, it may want to continue the trend expectation. With this in mind, withdrawal towards the resistance points of 123.00 and 123.150, especially 122,80, can be traced. In particular, movements above 100% Fibonacci Expansion 123.15 may allow it to reach the other Fibonacci region (124,09). Otherwise, retreat towards the bottom of the bullish trend may be observed. In this process, possible response levels before 122.33 were recorded as 122.58.
Alternative scenario: To end the positive trend view for EURJPY parity, the 122.33 level must be broken down. In case of a trend change, a negative outlook towards 121.67 and 121.35 support, especially 122.06, can be followed, and in case of such a change, retracement to the June bottom line 120.76 level may accelerate.
Support: 122,58 – 122,33 – 122,06 – 121,67
Resistance: 122,80 – 123,00 – 123,15 – 123,37