#USDJPY @ 133.276 is hovering above 133.00 as investors await US CPI for fresh impetus. (Pivot Orderbook analysis)

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• USD/JPY is hovering above 133.00 as investors await US CPI for fresh impetus.
• Fed might ignore a bumper rate hike ahead amid the SVB fallout.
• The release of the BoJ minutes will provide the likely monetary policy action ahead.

The pair currently trades last at 133.276.

The previous day high was 135.05 while the previous day low was 132.29. The daily 38.2% Fib levels comes at 133.34, expected to provide resistance. Similarly, the daily 61.8% fib level is at 133.99, expected to provide resistance.

The USD/JPY pair is displaying back-and-forth action above 133.00 in the Asian session. The asset has shown a recovery move from 132.50 but is struggling to extend gains amid the absence of strength in the US Dollar Index (DXY) after the Silicon Valley Bank (SVB) fallout. The loss of confidence of the market participants in the banking system of the United States has trimmed the safe-haven appeal dramatically.

S&P500 futures have recovered marginal losses recorded on Monday, indicating mild optimism in the market sentiment. The USD Index is aiming to recapture the immediate resistance of 103.80, however, the upside looks restricted amid expectations of the continuation of a smaller rate hike spell by the Federal Reserve (Fed). The rollback of 50 basis points (bps) rate hike expectations by the street has impacted the USD Index.

Meanwhile, the demand for US government bonds is narrowing again, which could be a recovery move from safe-haven assets. The 10-year US Treasury yields have rebounded to above 3.56%.

On Tuesday, the release of the United States Consumer Price Index (CPI) data would be a major trigger for the FX domain. Analysts at Wells Fargo expect “Another monthly increase of 0.4% in the overall CPI in February, which would put the annual rate at 6.0%. We still see inflation set to grind lower, but the process is likely to be bumpy and take time. Despite some directional improvement over the past couple of quarters, prices are still growing well above the Fed’s 2% target, and the tight labor market suggests that there are still inflationary pressures that could forestall a full return to 2% inflation.”

Meanwhile, Japan Chief Cabinet Secretary Hirokazu Matsuno said on Monday, they don’t see a big impact on Japan’s financial companies from the SVB fallout. He further added, “Japan’s financial institutions have sufficient liquidity, capital base overall. “

Going forward, the minutes of the Bank of Japan’s (BoJ) last monetary policy meeting conducted by ex-BoJ Governor Haruhiko Kuroda will be keenly watched, which is scheduled for Wednesday.

Technical Levels: Supports and Resistances

USDJPY currently trading at 133.3 at the time of writing. Pair opened at 133.2 and is trading with a change of 0.08 % .

The pair is trading below its 20 Daily moving average @ 135.3, above its 50 Daily moving average @ 132.46 , below its 100 Daily moving average @ 135.83 and below its 200 Daily moving average @ 137.49

The previous day high was 135.05 while the previous day low was 132.29. The daily 38.2% Fib levels comes at 133.34, expected to provide resistance. Similarly, the daily 61.8% fib level is at 133.99, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 131.97, 130.75, 129.21
• Pivot resistance is noted at 134.74, 136.28, 137.5

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