#USDJPY @ 132.847 clings to mild losses as market sentiment remains sour despite latest consolidation. (Pivot Orderbook analysis)

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• USD/JPY clings to mild losses as market sentiment remains sour despite latest consolidation.
• Yields stabilize near multi-day low as policymakers rush to tame financial market fears.
• Upbeat Japan data, challenges for hawkish central bank moves due to Credit Suisse crisis also weaken the Yen pair.
• Risk catalysts, bond market moves eyed for clear directions.

The pair currently trades last at 132.847.

The previous day high was 135.12 while the previous day low was 132.22. The daily 38.2% Fib levels comes at 133.32, expected to provide resistance. Similarly, the daily 61.8% fib level is at 134.01, expected to provide resistance.

USD/JPY fades late Wednesday’s corrective bounce off a one-month low as it prints mild losses around 133.00, down for the second consecutive day during early Thursday.

In doing so, the Yen pair ignores the latest inaction of the US Treasury bond yields, as well as the global policymakers’ efforts to placate the financial market fears emanating from the Credit Suisse crisis. The reason could be linked to the upbeat Japan data and less confidence in the Federal Reserve’s (Fed) hawkish bias.

Japan’s Machinery Orders for January, 9.5% MoM versus 1.8% expected and 1.6% prior, joins an improvement in Merchandise Trade Balance Total of ¥-897.7B compared to ¥-1,069.4B analysts’ estimations and ¥-3,498.6B previous readings to weigh on the USD/JPY pair.

Elsewhere, Reuters’ headlines suggesting that Credit Suisse eyes borrowing up to CHF50 billion from SNB to strengthen liquidity gain major attention and allow USD/JPY bears to take a breather. On the same line could be the news that anonymous sources conveyed that the US banks are less vulnerable to the Credit Suisse debacle. Furthermore, the emergency talks by the Bank of England (BoE) and market chatters suggesting no immediate negative reaction by the Federal Reserve (Fed) and ECB, during their monetary policy meetings, also seem to tame the previous risk aversion.

While portraying the mood, the S&P 500 Futures rise half a percent to reverse the previous day’s losses around 3,940 whereas the US 10-year Treasury bond yields stabilize around 3.49% after falling the most in four months on Wednesday. That said, the two-year Treasury bond coupons also pause the further downside around 3.96%, after falling to the lowest levels since September 2022.

Moving forward, Japan’s Industrial Production and Capacity Utilization will precede the second-tier US data concerning employment, manufacturing and housing activities to direct intraday moves of the USD/JPY pair. Though, headlines surrounding Credit Suisse, Silicon Valley Bank (SVB) and Signature Bank, as well as the bond market’s reaction to the same, will be crucial for clear directions.

50-DMA puts a floor under the USD/JPY prices around 132.50 amid bearish MACD signals, which in turn suggests limited downside room for the Yen pair.

Technical Levels: Supports and Resistances

USDJPY currently trading at 132.98 at the time of writing. Pair opened at 133.42 and is trading with a change of -0.33% % .

The pair is trading below its 20 Daily moving average @ 135.33, above its 50 Daily moving average @ 132.54 , below its 100 Daily moving average @ 135.56 and below its 200 Daily moving average @ 137.49

The previous day high was 135.12 while the previous day low was 132.22. The daily 38.2% Fib levels comes at 133.32, expected to provide resistance. Similarly, the daily 61.8% fib level is at 134.01, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 132.05, 130.68, 129.15
• Pivot resistance is noted at 134.95, 136.48, 137.85

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