#USDJPY @ 133.350 snaps three-day uptrend while retreating from the highest levels in three weeks., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/JPY snaps three-day uptrend while retreating from the highest levels in three weeks.
• RSI’s pullback from overbought territory adds strength to the downside bias.
• Convergence of one-week-old ascending trend line, 50-SMA restricts Yen pair’s short-term fall.
• Bears need validation from 12-day-long upward-sloping trend line to retake control.

The pair currently trades last at 133.350.

The previous day high was 133.82 while the previous day low was 131.83. The daily 38.2% Fib levels comes at 133.06, expected to provide support. Similarly, the daily 61.8% fib level is at 132.59, expected to provide support.

USD/JPY drops to 133.40 as bulls take a breather after a three-day uptrend during early Tuesday. In doing so, the Yen pair takes a U-turn from a three-week-old horizontal resistance area, as well as the 200-SMA.

Adding strength to the pullback moves could be the RSI (14) retreat from the overbought territory.

As a result, the Yen pair is well-set for further downside towards the 132.40-35 support confluence including the 50-SMA and one-week-old ascending trend line.

It should be noted, however, that there prevails limited room towards the south for the USD/JPY pair even if it breaks the 132.35 key support. The reason could be linked to an upward-sloping support line from March 24, close to 131.10 by the press time.

In a case where the USD/JPY bears keep the reins past 131.10, and also conquer the 131.00 round figure, the odds of witnessing a fresh 2023 low, currently around 127.20, can’t be ruled out.

On the contrary, the 200-SMA level of 133.60 precedes the aforementioned three-week-old horizontal resistance area surrounding 133.75-85 to limit the short-term upside of the USD/JPY pair.

Following that, the mid-March high of 135.05 acts as an intermediate halt during the likely run-up towards the YTD peak marked in the previous month at around 137.95.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 133.35 at the time of writing. Pair opened at 133.62 and is trading with a change of -0.20% % .

The pair is trading above its 20 Daily moving average @ 132.19, above its 50 Daily moving average @ 133.19 , below its 100 Daily moving average @ 133.39 and below its 200 Daily moving average @ 137.21

The previous day high was 133.82 while the previous day low was 131.83. The daily 38.2% Fib levels comes at 133.06, expected to provide support. Similarly, the daily 61.8% fib level is at 132.59, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 132.36, 131.1, 130.37
• Pivot resistance is noted at 134.35, 135.08, 136.34

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