#USDJPY @ 132.077 US Dollar recovers strength after US data. (Pivot Orderbook analysis)
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- US Dollar recovers strength after US data.
- US ISM Manufacturing Index drops to 48.4 versus 48.5 of market consensus.
- USD/JPY jumps after the report; attention turns to FOMC minutes.
The pair currently trades last at 132.077.
The previous day high was 131.4 while the previous day low was 129.51. The daily 38.2% Fib levels comes at 130.68, expected to provide support. Similarly, the daily 61.8% fib level is at 130.23, expected to provide support.
The USD/JPY jumped from below 131.00 to 131.90 hitting the highest level since December 30 following the release of the US ISM Manufacturing Index and ahead of the FOMC minutes. A sharp rebound in US yields weighed on the Japanese Yen.
The DXY is falling by just 0.35% and trades at 104.30 after being under 104.00 hours ago. The rebound accelerated after the latest round of US economic data. On the contrary, the Yen weakened amid surging US bond yields. The US 10-year yield rose from six-day lows at 3.67% to 3.71%.
The ISM Manufacturing report showed that business activity in the manufacturing sector contracted for the second straight month in December. The main index declined to 48.4 from 49 in November and below the market consensus of 48.5. The employment index rose to 51.4 surpassing expectations. The Price Paid index declined from 43 to 39.4, another sign of a slowdown in inflation.
The Federal Reserve will release at 19:00 GMT the minutes of the latest FOMC meeting. The document will be scrutinized for signs about the future path of monetary policy. On Thursday the ADP employment report is due and on Friday, NFP.
The USD/JPY is breaking and holding above 131.30/50, a positive development for the bulls. The pair is now looking at 132.00. Above the next relevant barrier is seen at the 132.30 zone. A decline back under 131.00 should suggest that the bearish pressure is still intact suggesting the bullish correction is over. A consolidation below 130.00 is needed to clear the way to more losses.
Technical Levels: Supports and Resistances
USDJPY currently trading at 130.88 at the time of writing. Pair opened at 130.96 and is trading with a change of -0.06 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 130.88 |
| 1 | Today Daily Change | -0.08 |
| 2 | Today Daily Change % | -0.06 |
| 3 | Today daily open | 130.96 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 134.3, 50 SMA 138.86, 100 SMA @ 141.04 and 200 SMA @ 136.3.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 134.30 |
| 1 | Daily SMA50 | 138.86 |
| 2 | Daily SMA100 | 141.04 |
| 3 | Daily SMA200 | 136.30 |
The previous day high was 131.4 while the previous day low was 129.51. The daily 38.2% Fib levels comes at 130.68, expected to provide support. Similarly, the daily 61.8% fib level is at 130.23, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 129.85, 128.73, 127.95
- Pivot resistance is noted at 131.74, 132.52, 133.63
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 131.40 |
| Previous Daily Low | 129.51 |
| Previous Weekly High | 134.50 |
| Previous Weekly Low | 130.78 |
| Previous Monthly High | 138.18 |
| Previous Monthly Low | 130.57 |
| Daily Fibonacci 38.2% | 130.68 |
| Daily Fibonacci 61.8% | 130.23 |
| Daily Pivot Point S1 | 129.85 |
| Daily Pivot Point S2 | 128.73 |
| Daily Pivot Point S3 | 127.95 |
| Daily Pivot Point R1 | 131.74 |
| Daily Pivot Point R2 | 132.52 |
| Daily Pivot Point R3 | 133.63 |
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