#USDJPY @ 146.132 has slipped to near 146.00 amid a vulnerable performance by 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 slipped to near 146.00 amid a vulnerable performance by the DXY.
• Rising demand for US bonds due to an upbeat market mood has resulted in a vertical drop in yields.
• Key triggers will be US GDP and Durable goods Orders for the DXY.
• The BOJ may continue its dovish stance due to external demand shocks.

The pair currently trades last at 146.132.

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 dropped sharply to 146.00 in the Asian session, following the bearish cues from the US dollar index (DXY). The asset has continued its two-day losing streak after surrendering Wednesday’s low at 146.22. The major is declining towards the low of knee-jerk reaction recorded on Monday to near 145.77.

The greenback bulls are facing an intense sell-off led by an upbeat market mood. The strengthening of a risk appetite theme has underpinned the risk-sensitive currencies. Meanwhile, the US dollar index (DXY) has refreshed its monthly low at 109.56 and is likely to remain on the tenterhooks ahead of the crucial US economic data.

Rising demand for US government bonds led by sheer optimism in global markets has resulted in a vertical drop in yields. The 10-year US Treasury yields have dropped to 4%.

On the economic data front, the US GDP has witnessed a growth rate of 2.4% in the third quarter, as per the estimates. Expectations are pointing at a growth rate despite the Federal Reserve (Fed)’s ultra-hawkish monetary policy against the de-growth of 0.6% reported earlier.

Also, the US Durable Goods Orders data will remain in the spotlight. The economic data is seen higher at 0.6% against a drop of 0.2%. It is worth noting that core inflation that excludes oil and food prices is on an escalation spree. In spite of this fact, the anticipation of an increment in demand for durable goods indicates robust demand from US households.

On the Tokyo front, investors are focusing on the interest rate decision by the Bank of Japan (BOJ), which is due on Friday. Considering the external demand shocks, BOJ Governor Haruhiko Kuroda would continue with an ultra-loose monetary policy to spurt the growth prospects. Also, Japanese officials are worried that the inflation rate could return below 2% again, therefore, keeping policy extremely loose is an optimal option.

Technical Levels: Supports and Resistances

USDJPY currently trading at 146.09 at the time of writing. Pair opened at 146.38 and is trading with a change of -0.2 % .

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

[/s2If]
Join Our Telegram Group