#USDJPY @ 132.438 prints three-day downtrend, fades the previous day’s corrective bounce off weekly low., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• USD/JPY prints three-day downtrend, fades the previous day’s corrective bounce off weekly low.
• Three-week-old ascending trend channel keeps the Yen pair buyers hopeful beyond 131.40.
• Bearish oscillators, repeated pullbacks from 200-SMA favor sellers.

The pair currently trades last at 132.438.

The previous day high was 133.39 while the previous day low was 132.02. The daily 38.2% Fib levels comes at 132.55, expected to provide resistance. Similarly, the daily 61.8% fib level is at 132.87, expected to provide resistance.

USD/JPY holds lower ground near 132.40 as it drops for the third consecutive day during early Friday, reversing late Thursday’s corrective bounce.

That said, the quote’s failure to extend the previous day’s rebound beyond the 38.2% Fibonacci retracement level of USD/JPY’s fall during March seems to tease the pair sellers. Adding strength to the downside bias are the bearish MACD signals and downbeat RSI (14), not oversold.

With this, the USD/JPY is well-set to retest the 100-SMA support of around 132.15. However, the quote’s further weakness appears limited at a three-week-long bullish trend channel that could challenge the Yean pair bears around 131.40.

Should the quote breaks the 131.40 support, the monthly low near 130.60 and the 130.00 psychological magnet can check the USD/JPY sellers before directing them to the yearly low of 129.65 marked in March.

On the flip side, the 38.2% Fibonacci retracement level of 132.85 guards the quote’s immediate upside ahead of the 200-SMA hurdle of 133.35.

Though, the 50% Fibonacci retracement and the aforementioned channel’s top line, respectively near 133.85 and 134.60, can challenge the USD/JPY buyers afterward.

Also acting as an upside filter is the 61.8% Fibonacci retracement of around 134.80, also known as the golden Fibonacci ratio, as well as tops marked during March 10-15, close to 135.10-15.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

USDJPY currently trading at 132.38 at the time of writing. Pair opened at 132.57 and is trading with a change of -0.14% % .

The pair is trading above its 20 Daily moving average @ 132.1, below its 50 Daily moving average @ 133.42 , below its 100 Daily moving average @ 133.19 and below its 200 Daily moving average @ 137.17

The previous day high was 133.39 while the previous day low was 132.02. The daily 38.2% Fib levels comes at 132.55, expected to provide resistance. Similarly, the daily 61.8% fib level is at 132.87, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 131.93, 131.29, 130.57
• Pivot resistance is noted at 133.3, 134.03, 134.67

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