#USDJPY @ 133.556 edges lower for the second successive day, though the downside lacks follow-through. (Pivot Orderbook analysis)
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- USD/JPY edges lower for the second successive day, though the downside lacks follow-through.
- The BoJ’s dovish outlook, along with a positive risk tone undermine the JPY and lend support.
- The recent slump in the US bond yields weighs on the USD and might cap the upside for the pair.
The pair currently trades last at 133.556.
The previous day high was 134.48 while the previous day low was 133.37. The daily 38.2% Fib levels comes at 133.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 134.05, expected to provide resistance.
The USD/JPY pair remains on the defensive for the second successive day on Wednesday, albeit manages to hold just above over a one-week low touched the previous day. The pair trades around the 133.50, down over 0.10% for the day during the early European session and is influenced by a combination of diverging forces.
The Bank of Japan (BoJ) Kazuo Ueda’s dovish remarks earlier this week, along with a modest recovery in the US equity futures, undermine the safe-haven Japanese Yen (JPY) and act as a tailwind for the USD/JPY pair. It is worth recalling that the new BoJ Governor said on Monday that the central bank must maintain monetary easing as trend inflation is still below 2% and added that inflation forecasts must be quite strong and close to 2% in the coming year to consider tweaking yield curve control.
The upside for the USD/JPY pair, however, remains capped, at least for the time being, amid renewed US Dollar (USD) selling, led by the recent slump in the US Treasury bond yields. In fact, the yield on the benchmark 10-year Treasury yields registered its largest decline since March amid rising concerns about the regional banking sector, the possibility of an imminent recession and worries about the US debt ceiling. This, in turn, fails to assist the Greenback to capitalize on the overnight strong gains.
Traders might also refrain from placing aggressive directional bets and move to wait on the sidelines ahead of the key US macro data/central bank event risk. Investors this week will confront the release of the Advance US Q1 GDP print on Thursday, which will be followed by the US Core PCE Price Index – the Fed’s preferred inflation gauge. This, along with the crucial BoJ monetary policy meeting on Friday, should provide a fresh impetus and help determine the near-term trajectory for the USD/JPY pair.
In the meantime, traders on Thursday will take cues from the release of the US Durable Goods Orders, due later during the early North American session. This, along with the US bond yields, might influence the USD price dynamics and provide some impetus to the USD/JPY pair. Apart from this, the broader risk sentiment should further contribute to producing short-term opportunities around the major.
Technical Levels: Supports and Resistances
USDJPY currently trading at 133.61 at the time of writing. Pair opened at 133.79 and is trading with a change of -0.13 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 133.61 |
| 1 | Today Daily Change | -0.18 |
| 2 | Today Daily Change % | -0.13 |
| 3 | Today daily open | 133.79 |
The pair is trading above its 20 Daily moving average @ 133.21, below its 50 Daily moving average @ 133.79 , above its 100 Daily moving average @ 132.95 and below its 200 Daily moving average @ 137.03
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 133.21 |
| 1 | Daily SMA50 | 133.79 |
| 2 | Daily SMA100 | 132.95 |
| 3 | Daily SMA200 | 137.03 |
The previous day high was 134.48 while the previous day low was 133.37. The daily 38.2% Fib levels comes at 133.79, expected to provide resistance. Similarly, the daily 61.8% fib level is at 134.05, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 133.28, 132.77, 132.17
- Pivot resistance is noted at 134.39, 134.99, 135.5
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 134.48 |
| Previous Daily Low | 133.37 |
| Previous Weekly High | 135.14 |
| Previous Weekly Low | 133.55 |
| Previous Monthly High | 137.91 |
| Previous Monthly Low | 129.64 |
| Daily Fibonacci 38.2% | 133.79 |
| Daily Fibonacci 61.8% | 134.05 |
| Daily Pivot Point S1 | 133.28 |
| Daily Pivot Point S2 | 132.77 |
| Daily Pivot Point S3 | 132.17 |
| Daily Pivot Point R1 | 134.39 |
| Daily Pivot Point R2 | 134.99 |
| Daily Pivot Point R3 | 135.50 |
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