#USDJPY @ 131.720 is marching towards 132.00 amid a risk-off mood propelled ahead of US inflation data. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/JPY is marching towards 132.00 amid a risk-off mood propelled ahead of US inflation data.
• The US inflation could display an upside surprise as the jobless rate is at a multi-decade low.
• Japan’s government might reveal the new BoJ governor nominee and two deputy governor nominees on Feb. 14.

The pair currently trades last at 131.720.

The previous day high was 131.83 while the previous day low was 130.34. The daily 38.2% Fib levels comes at 131.26, expected to provide support. Similarly, the daily 61.8% fib level is at 130.91, expected to provide support.

The USD/JPY pair is marching towards the critical resistance of 132.00 in the Tokyo session. The asset is witnessing significant strength amid the risk-aversion theme and favor for expansionary monetary policy by Bank of Japan (BoJ) Governor Haruhiko Kuroda.

The US Dollar Index (DXY) is aiming to shift its business above the 103.00 resistance amid an improvement in the appeal for safe-haven assets. Risk-perceived assets like S&P500 futures are witnessing selling interest despite a two-day sell-off spell. The United States Consumer Price Index (CPI) data that will release on Tuesday has hogged the limelight.

The consensus is calling for further softening of the headline inflation to 5.8% on an annual basis vs. the prior release of 6.5%. And, the core inflation that strips the impact of oil and food prices is seen lower at 5.3% against the former release of 5.8%. However, commentary from Richmond Fed President Thomas Barkin and the lowest Unemployment Rate recorded in January could surprise investors.

Fed Barkin argued that it would make sense for the Fed to steer “more deliberately” from here due to lagged effects of policy, as reported by Reuters. He further added that “While average inflation has peaked, the decline has been distorted by a few goods, the median has stayed high.”

On the Japanese Yen front, BoJ Governor Haruhiko Kuroda said on Friday, “The benefits of easing outweigh the costs of side effects.” He further added that policy easing was appropriate and it gave its utmost efforts.”

Meanwhile, Reuters has come up with an update for the release of the nominees for BOJ Kuroda’s successor. The agency reported Japan’s government is planning to present the new Bank of Japan governor nominee and two deputy governor nominees to parliament on Feb. 14.

Technical Levels: Supports and Resistances

USDJPY currently trading at 131.71 at the time of writing. Pair opened at 131.62 and is trading with a change of 0.07 % .

The pair is trading above its 20 Daily moving average @ 129.91, below its 50 Daily moving average @ 132.33 , below its 100 Daily moving average @ 138.32 and below its 200 Daily moving average @ 136.82

The previous day high was 131.83 while the previous day low was 130.34. The daily 38.2% Fib levels comes at 131.26, expected to provide support. Similarly, the daily 61.8% fib level is at 130.91, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 130.7, 129.78, 129.21
• Pivot resistance is noted at 132.18, 132.75, 133.67

[/s2If]
Join Our Telegram Group