#USDJPY @ 145.302 Monday’s knee-jerk reaction due to BOJ’s stealth intervention has been challenged. (Pivot Orderbook analysis)

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• Monday’s knee-jerk reaction due to BOJ’s stealth intervention has been challenged.
• The DXY has sensed volatility as the risk-on profile has recovered.
• A death cross, represented by the 50-and 200-EMAs, indicates more weakness ahead.

The pair currently trades last at 145.302.

The previous day high was 148.41 while the previous day low was 146.22. The daily 38.2% Fib levels comes at 147.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 147.58, expected to provide resistance.

The USD/JPY pair has slipped to near the low of the knee-jerk reaction recorded on Monday around 145.48. Investors considered Monday’s knee-jerk reaction a stealth intervention from the Bank of Japan (BOJ) to support the weakening yen. Analysts at National Australia Bank (NAB) in Sydney on Monday cited that “It’s blindingly obvious that the BOJ is intervening,”

The risk-on market mood has resurfaced sharply as S&P500 futures have recovered significantly. Meanwhile, the US dollar index (DXY) has slipped to 109.65 as a less-confident pullback has concluded.

On an hourly scale, the asset has surrendered the critical support of 145.48, recorded on Monday. The 50-and 200-period Exponential Moving Averages (EMAs) have delivered a death cross near 148.5, which indicates the strength of the yen bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which adds to the downside filters.

Going forward, a drop below October 7 low at 144.60 will drag the asset further towards October 4 low at 143.77, followed by September 13 low at 141.60.

On the flip side, the greenback bulls could regain glory if the asset oversteps Monday’s high at 149.71, which will send the asset towards October 20 high at 150.29. A breach of the latter will send the asset towards Friday’s high at 151.94.

Technical Levels: Supports and Resistances

USDJPY currently trading at 145.36 at the time of writing. Pair opened at 146.38 and is trading with a change of -0.7 % .

The pair is trading below its 20 Daily moving average @ 146.82, above its 50 Daily moving average @ 143.46 , above its 100 Daily moving average @ 139.43 and above its 200 Daily moving average @ 130.85

The previous day high was 148.41 while the previous day low was 146.22. The daily 38.2% Fib levels comes at 147.06, expected to provide resistance. Similarly, the daily 61.8% fib level is at 147.58, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 145.6, 144.82, 143.41
• Pivot resistance is noted at 147.79, 149.19, 149.97

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