#USDJPY @ 148.330 has shifted its auction profile above 148.00 as the risk aversion theme has been underpinned. (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 shifted its auction profile above 148.00 as the risk aversion theme has been underpinned.
• S&P500 futures have tumbled more than 1% on a decline in Microsoft’s sales growth forecasts.
• The BOJ may continue its ultra-dovish path to keep the economic prospects active.

The pair currently trades last at 148.330.

The previous day high was 149.1 while the previous day low was 147.52. The daily 38.2% Fib levels comes at 148.12, expected to provide support. Similarly, the daily 61.8% fib level is at 148.5, expected to provide resistance.

The USD/JPY pair has comfortably shifted its business above the critical hurdle of 148.00 in the Asian session. The asset has witnessed a fresh demand at around 148.00 as the risk-off impulse has returned.

Investors’ risk appetite has been trimmed which has resulted in a steep fall in S&P500 futures. The 500-stock futures basket has tumbled 1.15% after a three-day buying spree as Microsoft (MSFT) has trimmed its sales growth forecast by 5%. Meanwhile, the US dollar index (DXY) has reclaimed the round-level hurdle of 111.00 amid an improvement in safe-haven’s appeal.

The alpha on US Treasury has recovered minutely but is still in a bearish trajectory. The 10-year US Treasury yields are hovering around 4.10% after rebounding from 4.05%.

On Wednesday, the US New Home Sales data will hog the limelight. The economic data is expected to decline to 0.585M vs. the prior release of 0.685M on a monthly basis. As interest rates are accelerating sharply, individuals have postponed their real estate demand due to higher interest obligations. However, the US Gross Domestic Product (GDP) data will remain the ultimate trigger for the mighty DXY. The annualized GDP is expected to improve significantly to 2.4% vs. a decline of 0.6% reported earlier.

It is worth noting that the responsiveness of a decline in the USD/JPY pair was observed lower than the decline in the DXY on Tuesday after the risk-on impulse heated. Therefore, a rebound move in the USD/JPY pair could be firmer than the DXY as the risk aversion theme is knocking markets.

On the Tokyo front, investors seek more clarity on the stealth intervention in the currency markets by the Bank of Japan (BOJ) to make informed positions. Along with that, Friday’s interest rate decision by the BOJ will keep the anxiety at best. Most likely, BOJ Governor Haruhiko Kuroda will leave the interest rates unchanged and will continue its dovish tone amid weaker demand.

Technical Levels: Supports and Resistances

USDJPY currently trading at 148.3 at the time of writing. Pair opened at 147.94 and is trading with a change of 0.24 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 146.71, 50 SMA 143.23, 100 SMA @ 139.3 and 200 SMA @ 130.69.

The previous day high was 149.1 while the previous day low was 147.52. The daily 38.2% Fib levels comes at 148.12, expected to provide support. Similarly, the daily 61.8% fib level is at 148.5, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 147.27, 146.6, 145.68
• Pivot resistance is noted at 148.86, 149.77, 150.44

[/s2If]
Join Our Telegram Group