#USDJPY @ 144.744 remains subdued around the 144.40-80 area as traders brace for the weekend. (Pivot Orderbook analysis)

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• USD/JPY remains subdued around the 144.40-80 area as traders brace for the weekend.
• The interest rates differential, and central bank monetary policy divergence, are tailwinds for the USD/JPY.

The pair currently trades last at 144.744.

The previous day high was 144.81 while the previous day low was 144.06. The daily 38.2% Fib levels comes at 144.53, expected to provide support. Similarly, the daily 61.8% fib level is at 144.35, expected to provide support.

The USD/JPY consolidates in the 144.00-145.00 area following last week’s Bank of Japan (BoJ) intervention, which had kept the major directionless, as traders remain on the sidelines. Despite the solid correlation with the US 10-year T-bond yield, piercing the 4% threshold during the week, the USD/JPY did not attempt to clear the 145.00 figure. At the time of writing, the USD/JPY is trading at 144.70, above its opening price.

Given the backdrop that, fundamentally speaking, the interest rates differential between both economies, the central bank divergency with the Bank of Japan’s dovish stance is a tailwind for the USD/JPY.

From a technical analysis perspective, the USD/JPY is range-bound, though it remains upward biased, based on where the daily moving averages (DMAs) are located. During the week, the USD/JPY trading range has been the 143.50-144.90 area, so any breaks below would likely send the major towards the 140.00 figure. Conversely, a re-test of the 145.00 is possible, but with the BoJ vigilance around it, traders are not challenging the central bank.

The USD/JPY one-hour chart depicted a triple-top formation that extended to a multi-top, with the major remaining trendless. On the downside, the confluence of the 20, 50, and 100-EMA at around 144.47/53 are support levels, which, once cleared, will send the USD/JPY towards the S1 daily pivot at 144.02, shy of the 200-EMA. A breach of the latter will expose the S2 pivot at 143.50, followed by the S3 daily pivot point at 143.27.

Technical Levels: Supports and Resistances

USDJPY currently trading at 144.72 at the time of writing. Pair opened at 144.47 and is trading with a change of 0.17 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 143.29, 50 SMA 138.66, 100 SMA @ 136.05 and 200 SMA @ 127.82.

The previous day high was 144.81 while the previous day low was 144.06. The daily 38.2% Fib levels comes at 144.53, expected to provide support. Similarly, the daily 61.8% fib level is at 144.35, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 144.09, 143.7, 143.34
• Pivot resistance is noted at 144.83, 145.2, 145.58

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