US dollar extends losses on Friday, even as stocks decline. (Pivot Orderbook analysis)
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- US dollar extends losses on Friday, even as stocks decline.
- Japanese yen is among the best performers of the day and the week.
- USDJPY heads for a weekly loss of near 900 pips.
The pair currently trades last at 139.1.
The previous day high was 146.59 while the previous day low was 141.2. The daily 38.2% Fib levels comes at 143.26, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.53, expected to provide resistance.
The USDJPY is testing levels under 139.00 during Friday’s American session, holding onto significant weekly losses. During the last two days, the pair dropped more than 700 pips.
The October US CPI triggered sharp market moves that favored the yen. On Friday, the USDJPY rose to 142.40/50 only to turn to the downside again breaking under 140.00.
The collapse of the Dollar and lower US yields sent the USDJPY down during the week from 147.15 to levels under 139.00, falling almost 6% on the worst week in years. The pair is back at August levels and clearly below the 20-week Simple Moving Average for the first time since January 2021.
The DXY is extending weekly losses late on Friday as it drops 1.12%, to 106.70, the lowest since mid-August. Not even a decline in equity prices, nor a bad reading in US Consumer Sentiment is helping the Dollar.
Next week, attention will continue to be on the USD’s trend. Economic data in the US includes the Producer Price Index on Tuesday and Retail Sales on Wednesday. In Japan, the National CPI will be released Friday with an increase expected from 3.0% to 3.7%. “In a sign that inflation is becoming more broad-based, core ex-energy is expected at 2.4% y/y vs. 1.8% in September. Yet the BOJ shows no signs of pivoting under Governor Kuroda. The next policy meeting is December 19-20 and no change is expected then”, said analysts at Brown Brothers Harriman.
Technical Levels: Supports and Resistances
EURUSD currently trading at 139.1 at the time of writing. Pair opened at 141.23 and is trading with a change of -1.51 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 139.10 |
| 1 | Today Daily Change | -2.13 |
| 2 | Today Daily Change % | -1.51 |
| 3 | Today daily open | 141.23 |
The pair is trading below its 20 Daily moving average @ 147.57, below its 50 Daily moving average @ 145.42 , below its 100 Daily moving average @ 140.73 and above its 200 Daily moving average @ 132.62
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 147.57 |
| 1 | Daily SMA50 | 145.42 |
| 2 | Daily SMA100 | 140.73 |
| 3 | Daily SMA200 | 132.62 |
The previous day high was 146.59 while the previous day low was 141.2. The daily 38.2% Fib levels comes at 143.26, expected to provide resistance. Similarly, the daily 61.8% fib level is at 144.53, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 139.42, 137.62, 134.03
- Pivot resistance is noted at 144.81, 148.39, 150.2
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 146.59 |
| Previous Daily Low | 141.20 |
| Previous Weekly High | 148.85 |
| Previous Weekly Low | 145.67 |
| Previous Monthly High | 151.94 |
| Previous Monthly Low | 143.53 |
| Daily Fibonacci 38.2% | 143.26 |
| Daily Fibonacci 61.8% | 144.53 |
| Daily Pivot Point S1 | 139.42 |
| Daily Pivot Point S2 | 137.62 |
| Daily Pivot Point S3 | 134.03 |
| Daily Pivot Point R1 | 144.81 |
| Daily Pivot Point R2 | 148.39 |
| Daily Pivot Point R3 | 150.20 |
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