#USDJPY @ 142.695 Breaking: corrects sharply below 144.00 as Japan intervenes (Pivot Orderbook analysis)

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The pair currently trades last at 142.695.

The previous day high was 144.7 while the previous day low was 143.34. The daily 38.2% Fib levels comes at 144.18, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.86, expected to provide resistance.

USD/JPY has come under intense selling pressure and given away over 200 pips on news that the Japanese government has intervened in the forex market to stem the rapid decline in the yen.

Japan’s top currency diplomat Masato Kanda confirmed over the last minutes that they have intervened in the FX market.

Earlier in the day, Kanda warned that they “will respond appropriately to fx moves without ruling out any options.”

In response to the big move by Japan, USD/JPY is in a free fall and has broken several critical support, as yen bulls are being rescued finally. The pair hit the highest level in 24 years at 145.90 before the Japanese authorities deemed it necessary to step in order to save the local currency. The government intervened to buy the yen for the first time since 1998.

Ahead of the announcement, the major was trading at near 145.80 levels, adding over 1% on the day, having benefited from the Bank of Japan’s (BOJ) status-quo. The BOJ kept its policy settings unchanged, maintaining its ultra-loose dovish bias. Hawkish Fed outlook and the BOJ’s refusal to act drove the currency pair to the best levels seen in over two decades.

At the time of writing, USD/JPY is trading at 142.65, shedding 0.95% so far.

Technical Levels: Supports and Resistances

USDJPY currently trading at 142.68 at the time of writing. Pair opened at 144.05 and is trading with a change of -0.81 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 141.63, 50 SMA 137.98, 100 SMA @ 135.2 and 200 SMA @ 126.92.

The previous day high was 144.7 while the previous day low was 143.34. The daily 38.2% Fib levels comes at 144.18, expected to provide resistance. Similarly, the daily 61.8% fib level is at 143.86, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 143.36, 142.67, 142.0
• Pivot resistance is noted at 144.72, 145.39, 146.08

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