#USDJPY @ 136.505 Japanese Yen rises across the board amid lower US yields and risk aversion. (Pivot Orderbook analysis)

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• Japanese Yen rises across the board amid lower US yields and risk aversion.
• Dow Jones falls 1.50%, US 10-year yield drops to 3.44%.
• USD/JPY slides more than a hundred pips after the beginning of the US session.

The pair currently trades last at 136.505.

The previous day high was 137.54 while the previous day low was 136.18. The daily 38.2% Fib levels comes at 137.02, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.7, expected to provide resistance.

The Japanese Yen gained momentum during the American session amid risk aversion, causing the USD/JPY to drop from the highest level in seven weeks near 137.75 to 136.36, hitting a fresh daily low.

US regional bank stocks are under pressure on Tuesday, weighing on market sentiment, despite the takeover of First Republic Bank.

US data came in a little softer than expected ahead of Wednesday’s FOMC decision. Market participants still expect a 25 basis point rate hike, but bets of a rate cut later in the year have risen during the last hours. The US 10-year Treasury yield is falling more than 4% to 3.43%, while the 2-year fell from 4.14% to 3.94%, reaching the lowest levels since last Thursday.

The decline in government yields is helping the Japanese Yen. Wall Street indexes are falling by more than 1.5%, and the VIX has jumped 20%.

The USD/JPY pair is experiencing its largest daily loss in a month. The reversal is occurring from the 200-day Simple Moving Average (SMA), which is presently at 137.00. The next level of support could be found around 136.00, followed by 135.20. If the pair recovers above 137.20, it would ease the current bearish pressure.

Considering current price action in financial markets and upcoming key events such as the FOMC and ECB decisions, as well as the NFP, volatility is expected to remain high.

Technical levels

Technical Levels: Supports and Resistances

USDJPY currently trading at 136.6 at the time of writing. Pair opened at 137.5 and is trading with a change of -0.65 % .

The pair is trading above its 20 Daily moving average @ 133.74, above its 50 Daily moving average @ 133.89 , above its 100 Daily moving average @ 132.89 and below its 200 Daily moving average @ 136.99

The previous day high was 137.54 while the previous day low was 136.18. The daily 38.2% Fib levels comes at 137.02, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.7, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 136.6, 135.71, 135.24
• Pivot resistance is noted at 137.96, 138.43, 139.32

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