#USDJPY @ 133.000 bulls are in the market and pushing the price into the 133 area. (Pivot Orderbook analysis)

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• USD/JPY bulls are in the market and pushing the price into the 133 area.
• US CPI supported the US Dollar while the new BoJ head stays the course with YCC.

The pair currently trades last at 133.000.

The previous day high was 132.91 while the previous day low was 131.27. The daily 38.2% Fib levels comes at 132.29, expected to provide support. Similarly, the daily 61.8% fib level is at 131.9, expected to provide support.

USDJPY is flat in early Asia, consolidating the overnight volatility that occurred in a relatively standard range as the market continues to try to second-guess the Federal Reserve’s next move based on the latest data. The pair rallied to a high of 133.31 from a low of 131.498.

First of all, the Yen was initially bid on the back of the surprise choice in the new Bank of Japan’s governor Academic Kazuo Ueda who faces a rocky time. ”He is respected but as an outsider lacks factional support within the financial bureaucracy and faces an unpopular prime minister pushing an expensive agenda,” reporters at Reuters wrote.

It was anticipated that Ueda would have to modify or abandon YCC given how much damage it is doing to the bond market and the BOJ’s balance sheet. But he is unlikely to start normalising rates straight away and he announced that the central bank will need to stick with the YCC. Speaking on Japanese TV, earlier in the week, Ueda remarked that it is important for the BoJ to keep easing for now. As a consequence, JPY gave back many of its initial gains ahead of the US Consumer Price Index on Tuesday.

”Assuming some relaxation in YCC, we see scope for a move to USD/JPY128 on a 3 month view. However, a hawkish Fed is likely to limit the scope for JPY appreciation,” analysts at Rabobank said.

The annual inflation rate in the US, as measured by the Consumer Price Index, slowed only slightly to 6.4% in January from 6.5% in December, less than market forecasts of 6.2%, suggesting that getting inflation under control will take more time than expected.

The US Dollar index traded around 103.00 on Tuesday but posied higher due to the hotter-than-expected US inflation dashing hopes that the Federal Reserve will soon end its tightening campaign.

Technical Levels: Supports and Resistances

USDJPY currently trading at 133.09 at the time of writing. Pair opened at 132.29 and is trading with a change of 0.6 % .

The pair is trading above its 20 Daily moving average @ 130.27, above its 50 Daily moving average @ 132.18 , below its 100 Daily moving average @ 138.08 and below its 200 Daily moving average @ 136.84

The previous day high was 132.91 while the previous day low was 131.27. The daily 38.2% Fib levels comes at 132.29, expected to provide support. Similarly, the daily 61.8% fib level is at 131.9, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 131.41, 130.52, 129.77
• Pivot resistance is noted at 133.04, 133.8, 134.68

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