#USDJPY @ 139.572 USDJPY snaps two-day downtrend at the lowest levels since late August. (Pivot Orderbook analysis)

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• USDJPY snaps two-day downtrend at the lowest levels since late August.
• Yields fail to extend corrective pullback from monthly low on receding fears of hawkish Fed actions.
• BOJ’s defense of easy-money policy, hopes of economic rebound highlight this week’s Japan Q3 GDP.
• Updates from G20 can direct immediate moves, US Retail Sales is also important for near-term directions.

The pair currently trades last at 139.572.

The previous day high was 142.49 while the previous day low was 138.47. The daily 38.2% Fib levels comes at 140.0, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.95, expected to provide resistance.

USDJPY licks its wounds at a 2.5-month low as it consolidates recent losses with 0.70% intraday gains around 139.50 as markets in Tokyo open for Monday.

In doing so, the yen pair justifies the recent cautious mood as bond traders return from a long weekend. Also likely to have challenged the USDJPY bears is the anxiety ahead of a meeting between US President Joe Biden and China’s Prime Minister Xi Jinping on the sidelined of the Group of 20 Nations (G20) gathering in Bali.

Also likely to have triggered the USDJPY rebound could be the comments from Fed Governor Christopher Waller who tried to defend the bulls while saying, “Rates will not fall until there is ‘clear, strong evidence’ inflation is falling.”

While portraying the mood, the S&P 500 Futures retreat from a one-month high, down 0.30% intraday near 3,990, whereas the US 10-year Treasury yields rise six basis points (bps) to 3.89%, printing the first daily gains in four.

It’s worth noting, however, that the chatters surrounding the US Federal Reserve’s (Fed) pivot, mainly backed by the last week’s US Consumer Price Index (CPI) for October and the November month’s first readings of the University of Michigan Consumer Confidence Index.

Additionally, talks of the Japanese Finance Ministry’s intervention to defend the Yen (JPY) also drowned the USDJPY prices.

Alternatively, the Bank of Japan (BOJ) policymakers’ defense of easy money and challenge to the market’s optimism from Russia and China appear to keep the bears on their toes.

Moving on, updates from the Group of 20 Nations (G20) meeting in Bali could entertain market players amid a light calendar and also because US President Joe Biden and China’s Prime Minister Xi Jinping will be meeting there. However, major attention will be given to the first readings of Japan’s third quarter (Q3) Gross Domestic Product (GDP) and the US Retail Sales for October amid hopes of easing divergence between the Fed and the BOJ.

Although the nearly oversold RSI (14) challenges USDJPY bears, a daily closing below the 100-DMA, around 140.85 by the press time, keeps sellers hopeful of testing an upward-sloping support line from late May, around 137.00 by the press time.

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.62 at the time of writing. Pair opened at 138.68 and is trading with a change of 0.68% % .

The pair is trading below its 20 Daily moving average @ 147.07, below its 50 Daily moving average @ 145.39 , below its 100 Daily moving average @ 140.77 and above its 200 Daily moving average @ 132.74

The previous day high was 142.49 while the previous day low was 138.47. The daily 38.2% Fib levels comes at 140.0, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.95, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 137.27, 135.86, 133.25
• Pivot resistance is noted at 141.28, 143.89, 145.3

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