USDJPY parity is focused on the FOMC minutes on June 19th and the BOJ meeting on June 20th. Even though the parity, which maintained its negative trend outlook before critical macroeconomic developments, tried to maintain its short-term reaction buying in the region of 107.85 – 107.50, the pricing behavior did not show an eager profile. Therefore, the upper and lower points of the downtrend remain important in interpreting the short-term expectation. These points were recorded as 109,12 and 107,85 – 107,50 regions.
Main scenario: The USDJPY parity continues to look negative below the 109,12 barrier above the downward trend. If the parity continues to trend expectations, it may retreat to the 107.85 – 107.50 zone and may wish to make a decision again. The downward rupture of the 107,85 – 107,50 region may allow the sales pressure to accelerate and, if it remains on the respective region, a further compression of 109,12 – 107,50 may be observed.
Alternative scenario: Movements on the resistance point 109,12 should be followed in order to end the negative expectation for USD JPY parity and a positive outlook can be placed in the forefront. However, new pricing can be tracked towards 110.23 and 110.88 levels, in particular 109,70.
Support: 107,85 – 107,50 – 106,75
Resistance: 108,58 – 109,12 – 109,70