Japanese yen soars after US CPI numbers on expectations of a less aggressive Fed. (Pivot Orderbook analysis)

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• Japanese yen soars after US CPI numbers on expectations of a less aggressive Fed.
• US Dollar tumbles, USDJPY is down more than 400 pips.
• EURJPY testing critical support area 144.00.

The pair currently trades last at 144.31.

The previous day high was 147.11 while the previous day low was 146.32. The daily 38.2% Fib levels comes at 146.81, expected to provide resistance. Similarly, the daily 61.8% fib level is at 146.62, expected to provide resistance.

The EURJPY cross is having the biggest daily decline in months on the back of a stronger Japanese yen across the board amid lower US yields. It bottomed 143.98, the lowest since October 24.

The US October CPI showed numbers below expectations and triggered a rally in Wall Street and Treasuries. The sharp decline in US yields strengthened the Japanese Yen, the best performer on Thursday, with USDJPY falling more than 450 pips.

EURUSD’s rally is keeping losses limited in EURJPY. The cross is testing a critical support area around 144.00. A break lower would open the doors more losses. The euro needs to keep that level in order to avoid deterioration in the already negative technical outlook.

On the upside, resistance in EURJPY emerges at 145.50; although the cross needs to rise and hold above 147.00 for the euro to strengthen. If EURUSD keeps rising and risk appetite prevails, the on-course correction could find some reasons to slow down. The resumption of the uptrend would need US yields to turn to the upside again.

Technical Levels: Supports and Resistances

EURUSD currently trading at 144.31 at the time of writing. Pair opened at 146.68 and is trading with a change of -1.62 % .

The pair is trading below its 20 Daily moving average @ 146.28, above its 50 Daily moving average @ 143.66 , above its 100 Daily moving average @ 141.12 and above its 200 Daily moving average @ 138.0

The previous day high was 147.11 while the previous day low was 146.32. The daily 38.2% Fib levels comes at 146.81, expected to provide resistance. Similarly, the daily 61.8% fib level is at 146.62, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 146.3, 145.91, 145.5
• Pivot resistance is noted at 147.09, 147.49, 147.88

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