#USDJPY @ 142.853 has picked significant bids around 142.50 despite lower consensus for the US inflation. (Pivot Orderbook analysis)

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• USD/JPY has picked significant bids around 142.50 despite lower consensus for the US inflation.
• A back-to-back decline in US CPI will force the Fed to scale down its hawkish tone.
• The depreciating yen is impacting the corporate margins to a great extent.

The pair currently trades last at 142.853.

The previous day high was 144.13 while the previous day low was 141.5. The daily 38.2% Fib levels comes at 142.51, expected to provide support. Similarly, the daily 61.8% fib level is at 143.13, expected to provide resistance.

The USD/JPY pair has sensed a decent buying interest around the immediate support of 142.50 in the Asian session. The asset is aiming for a rebound as investors have focused their shift on the US Consumer Price Index (CPI) data, which will release on Tuesday. Broadly, the asset has remained in the grip of bears for the past week after failing to cross the critical hurdle of 145.00. The major has slipped to near 142.00 and is expected to display volatile moves ahead of US inflation data.

A decline in forecasts for the US inflation data has trimmed the bullish bets toward the US dollar index (DXY). The inflation rate is expected to trim down to 8.1% against the prior release of 8.5%. In case of its occurrence, the Federal Reserve (Fed) will scale down its hawkish tone for interest rate guidance. A back-to-back decline in the headline inflation rate will bolster the fact that an intermittent top for price pressures have created and exhaustion signals are dragging it lower.

On the Tokyo front, the depreciating yen is impacting the Japanese economy. A weaker yen is resulting in costly imports in the Japanese economy. This is impacting the margins of the corporate sector to a great extent as input prices have soared dramatically and the companies have failed in passing on the impact of higher input prices to the end consumers.

Meanwhile, Goldman Sachs has argued that intervention in Fx moves from Japan’s officials doesn’t seem to be a part of ongoing planning. As the Bank of Japan (BOJ) is still sticking to its ultra-loose monetary policy and the intervention is followed by a stance change in monetary policy.

Technical Levels: Supports and Resistances

USDJPY currently trading at 142.82 at the time of writing. Pair opened at 142.47 and is trading with a change of 0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 138.58, 50 SMA 136.84, 100 SMA @ 134.06 and 200 SMA @ 125.72.

The previous day high was 144.13 while the previous day low was 141.5. The daily 38.2% Fib levels comes at 142.51, expected to provide support. Similarly, the daily 61.8% fib level is at 143.13, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 141.27, 140.07, 138.64
• Pivot resistance is noted at 143.9, 145.33, 146.53

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