#USDJPY @ 143.224 has turned sideways around 143.50 after a firmer decline from 145.00. (Pivot Orderbook analysis)

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• USD/JPY has turned sideways around 143.50 after a firmer decline from 145.00.
• Investors await fresh developments on BOJ’s intervention plans in Fx moves to fix depreciating yen.
• The US Michigan Consumer Sentiment Index is seen higher at 60 vs. 58.2 the prior release.

The pair currently trades last at 143.224.

The previous day high was 143.8 while the previous day low was 142.8. The daily 38.2% Fib levels comes at 143.42, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.18, expected to provide support.

The USD/JPY pair is displaying back-and-forth moves in a narrow range of 143.15-143.56 in the Asian session. The asset has turned sideways after a firmer decline at around 145.00 as investors are awaiting the latest developments on the Bank of Japan (BOJ)’s intervention in Fx moves.

Investors are aware of the fact that the Japanese administration is worried about depreciating the Japanese yen. Earlier, the Japanese economy was enjoying the falling yen as it was delighting their exports and tourism business. But not the over-riped fruit is creating hurdles for the economy. The corporate is facing the headwinds of costly inputs imported from other countries.

Companies that are highly import-inputs dependent are struggling to keep their operating margins intact. Their failure in passing the impact of higher input prices to the end-consumers due to country risk is forcing them to shut down their production. The impact will be revealed in the upcoming earnings season.

Now, Japanese officials feel that the fundamentals of the economy don’t justify the downside pressure and have discussed intervention in Fx moves with the Bank of Japan (BOJ). A seldom decision of intervening is not expected to be welcomed by other G7 countries. While a change in stance on policy seems to be the potential way to provide a cushion to the falling yen.

In today’s session, investors’ entire focus will remain on the US Michigan Consumer Sentiment Index, which is seen higher at 60 against the prior release of 58.2. It is worth noting that the sentiment data is in a recovery mode after dropping to 50 in June. In the past two months, the confidence of consumers is returning led by a solid labor market, falling gasoline prices, and higher growth prospects.

Technical Levels: Supports and Resistances

USDJPY currently trading at 143.34 at the time of writing. Pair opened at 143.52 and is trading with a change of -0.13 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 140.36, 50 SMA 137.45, 100 SMA @ 134.66 and 200 SMA @ 126.32.

The previous day high was 143.8 while the previous day low was 142.8. The daily 38.2% Fib levels comes at 143.42, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.18, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 142.95, 142.37, 141.94
• Pivot resistance is noted at 143.95, 144.38, 144.96

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