#USDJPY @ 148.927 has rebounded firmly to near 149.00 amid sheer volatility in the DXY. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/JPY has rebounded firmly to near 149.00 amid sheer volatility in the DXY.
• Firmer market sentiment has brought a recovery in the asset.
• The BOJ is expected to continue its ultra-dovish monetary policy ahead.

The pair currently trades last at 148.927.

The previous day high was 151.94 while the previous day low was 146.19. The daily 38.2% Fib levels comes at 148.39, expected to provide support. Similarly, the daily 61.8% fib level is at 149.75, expected to provide resistance.

The USD/JPY pair has recovered almost its entire morning losses and has scaled back to near 149.00 in the Tokyo session. Earlier, the asset plunged to near 145.48 as the US dollar index (DXY) turned extremely volatile. The DXY witnessed a wild swing in the 111.46-112.26 range.

Market sentiment is extremely positive as S&P500 futures have gained further after a bullish Friday. The 10-Year US Treasury yields have dropped marginally to 4.21%. Last week, the returns on 10-year US Treasury yields top around 4.34% in the past 14 years.

Meanwhile, Reuters has cited that the second straight knee-jerk reaction in the USD/JPY pair is a suspected early intervention by the Bank of Japan (BOJ) in the FX market.

Analysts at National Australia Bank (NAB) in Sydney have cited that “It’s blindingly obvious that the BOJ is intervening,”

In early Asia, Japan’s top currency diplomat Masato stated that the administration is ready to take necessary action 24*7 to support the Japanese yen against one-sided speculative moves in the currency market. Japanese officials denied commenting on their intervention in FX markets but promises to take necessary action against disorderly market moves.

Going forward, the interest rate decision by the Bank of Japan (BOJ) will be of utmost importance, which is due on Wednesday. Weak economic fundamentals due to external demand shocks will force the BOJ to continue its dovish stance on interest rates. Last week, BOJ’s Governor Haruhiko Kuroda crossed wires, citing that Japan’s economy is vulnerable to external demand shock, which could tip it back to deflation. This clears the fact that the concept of policy tightening is far from thought.

Technical Levels: Supports and Resistances

USDJPY currently trading at 148.78 at the time of writing. Pair opened at 147.75 and is trading with a change of 0.7 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 146.35, 50 SMA 142.64, 100 SMA @ 138.98 and 200 SMA @ 130.35.

The previous day high was 151.94 while the previous day low was 146.19. The daily 38.2% Fib levels comes at 148.39, expected to provide support. Similarly, the daily 61.8% fib level is at 149.75, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 145.31, 142.88, 139.56
• Pivot resistance is noted at 151.07, 154.38, 156.82

[/s2If]
Join Our Telegram Group