#USDJPY @ 139.077 Japanese yen weakens amid higher government bond yields. (Pivot Orderbook analysis)

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• Japanese yen weakens amid higher government bond yields.
• US Dollar Index rises 0.55% on a quiet low-volume session.
• USD/JPY heads for weekly loss despite Friday’s gains.

The pair currently trades last at 139.077.

The previous day high was 139.65 while the previous day low was 138.05. The daily 38.2% Fib levels comes at 138.66, expected to provide support. Similarly, the daily 61.8% fib level is at 139.04, expected to provide support.

The rally of USD/JPY was capped by the 139.50/60 area. Near the end of the week, the pair holds firm above 139.00 supported by rising sovereign bond yields as Wall Street posts gains.

The Japanese yen fell across the board on Friday, weakened by rising bond yields. The US 10-year bond yield rose to 3.75%, a two-day high while the German 10-year climbed to 1.98%. In Wall Street, the Dow Jones was up by 0.46% and the Nasdaq was falling by 0.29% on a shortened session.

The US Dollar Index was up 0.55% on Friday, but still headed toward the lowest weekly close since mid-August affected by the less hawkish FOMC minutes. Next week, attention will be on the Non-farm payrolls report due on Friday.

The USD/JPY is about to post a weekly loss of a little more than one hundred pips. During the week it traded as high as 142.24, but then pulled back under the 20-week Simple Moving Average (SMA) that stands at 140.90.

The pair continues to move around 140.00, away from the multi-decade high it hit on October. The declines so far have been contained above 137.50. A daily close below 138.50 would increase the bearish pressure.

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.34 at the time of writing. Pair opened at 138.52 and is trading with a change of 0.59 % .

The pair is trading below its 20 Daily moving average @ 143.29, below its 50 Daily moving average @ 144.84 , below its 100 Daily moving average @ 141.14 and above its 200 Daily moving average @ 133.84

The previous day high was 139.65 while the previous day low was 138.05. The daily 38.2% Fib levels comes at 138.66, expected to provide support. Similarly, the daily 61.8% fib level is at 139.04, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 137.83, 137.13, 136.22
• Pivot resistance is noted at 139.43, 140.35, 141.04

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