Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate are known today as the most important news. The USDJPY parity may want to accelerate its movements with this data from the USA. Prior to the critical data, we are looking for answers to the question of whether USDJPY, which is trying to continue its negative trend outlook especially under barrier 118.58, can maintain this attitude.
Main Scenario: The USDJPY parity continues its negative outlook under the 108.58 barrier, the top of the downtrend. The parity may retreat to the 107.35 and 106.85 support if the trend expectations continue. In particular, the downward break of the 106.85 level could appetite the sales pressure towards the channel bottom point 106.00 and 2019 bottom point 104.72 levels. Otherwise, recovery to 108.58 barrier may be observed.
Alternative Scenario: If USDJPY wants to end the negative trend, movements over the 108.58 barrier should be monitored. With such a trend change, the buying pressure can be traced to levels 109.12 and 109.70, as well as the related rising of the bulls, the idea of moving / approaching the 111.49 barrier supporting the main negative trend.
As we have emphasized at the beginning of the article, data from the US is important as to whether the parity will continue its negative trend outlook.
Support: 107,35 – 106,85 – 106,45
Resistance: 107,85 – 108,58 – 109,12