On the day that the central bank of Japan did not change its policy rate, the USDJPY parity showed some recovery with the support of the Dollar index limiting its downward movements in the short term. While preparing the analysis, the parity is traded at the level of 118.74.
We are following the 118.18 – 118.40 region for short-term pricing in USDJPY parity. As long as the pair moves above the 118.18 – 118.40 region, the positive expectation may be in the foreground. If the upward movement continues, 118.88 and 119.10 levels may come to the fore. At this stage, the level of 119.10 may draw an outlook that suppresses the uptrend.
As the positive trending moves are suppressed at 118.88, pullbacks towards 118.60 and 118.40 levels can be observed. As possible pullbacks are limited to the 118.18 – 118.40 region, new upswings can be recorded from this region. Therefore, permanent pricing below the 118.18 level may be needed to consolidate the negative expectation. In this case, 118.00 and 117.80 levels can be encountered.
In summary; In the short term, as long as the pricing moves above the 118.18 – 118.40 region, the positive expectation may be in the foreground.
High of the Day: 118.18 – 118.40 region