#USDJPY @ 141.761 surges past the 141.00 confluence and rises to over a one-week high on Monday. (Pivot Orderbook analysis)

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• USD/JPY surges past the 141.00 confluence and rises to over a one-week high on Monday.
• Strong follow-through USD buying remains supportive amid the Fed-BoJ policy divergence.
• The mixed technical setup warrants some caution before positioning for any further gains.

The pair currently trades last at 141.761.

The previous day high was 140.5 while the previous day low was 139.64. The daily 38.2% Fib levels comes at 140.17, expected to provide support. Similarly, the daily 61.8% fib level is at 139.97, expected to provide support.

The USD/JPY pair gains strong positive traction on Monday and recovers further from its lowest level since August 29 touched last week. Spot prices climb to over a one-week high during the early North American session, with bulls now looking to build on the momentum further beyond the 142.00 mark.

The worsening COVID-19 situation in China and the imposition of fresh lockdowns fuel worries about a deeper economic downturn. This, in turn, boosts the US Dollar’s status as the global reserve currency. This, along with a big divergence in the monetary policy stance adopted by the Federal Reserve and the Bank of Japan, provides an additional lift to the USD/JPY pair.

From a technical perspective, a sustained strength above the 141.00 confluence support breakpoint, turned resistance, was seen as a key trigger for intraday bulls. The said handle comprises the 100-day SMA and the 50% Fibonacci retracement level of the August-October rally. This should now act as a pivotal point and determine the near-term direction for the USD/JPY pair.

Meanwhile, oscillators on the daily chart – though have been recovering from lower levels – are still holding in the bearish territory. This warrants caution before positioning for a further appreciating move. Hence, any subsequent move-up is more likely to remain capped near the 142.45-142.50 resistance. That said, some follow-through buying should pave the way for additional gains.

The USD/JPY pair might then accelerate the recovery momentum towards reclaiming the 143.00 mark, above which bulls could aim to test the 38.2% Fibo. level, around the 143.50 region.

On the flip side, the 141.00 round figure now seems to protect the immediate downside ahead of the 140.80-140.75 region. The next relevant support is pegged near the 140.25-140.20 horizontal zone. This is closely followed by the 140.00 psychological mark. A convincing break below the latter will negate any near-term positive outlook and shift the bias back in favour of bearish traders.

Technical Levels: Supports and Resistances

USDJPY currently trading at 141.95 at the time of writing. Pair opened at 140.4 and is trading with a change of 1.1 % .

The pair is trading below its 20 Daily moving average @ 144.71, below its 50 Daily moving average @ 145.09 , above its 100 Daily moving average @ 140.96 and above its 200 Daily moving average @ 133.34

The previous day high was 140.5 while the previous day low was 139.64. The daily 38.2% Fib levels comes at 140.17, expected to provide support. Similarly, the daily 61.8% fib level is at 139.97, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 139.86, 139.31, 138.99
• Pivot resistance is noted at 140.72, 141.04, 141.58

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