#USDJPY @ 139.772 declined for two consecutive days following remarks from Japanese authorities indicating increased scrutiny of currency market movements. (Pivot Orderbook analysis)

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• USD/JPY declined for two consecutive days following remarks from Japanese authorities indicating increased scrutiny of currency market movements.
• Japanese Yen strengthens in response to the news, putting downward pressure on the USD/JPY pair.
• USD/JPY maintains an upward bias as long as it holds above the key level of 138.74, representing the May 18 daily high.

The pair currently trades last at 139.772.

The previous day high was 140.92 while the previous day low was 140.11. The daily 38.2% Fib levels comes at 140.42, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.61, expected to provide resistance.

USD/JPY dropped for two consecutive days after Japanese authorities expressed that currency market moves would be watched, following a meeting between the Bank of Japan (BoJ) and Masato Kanda, vice finance minister for international affairs. After those remarks, the Japanese Yen (JPY) strengthened. At the time of writing, the USD/JPY is trading at 139.87, losing 0.40%.

USD/JPY remains upward biased as long as the pair remains above the May 18 daily high of 138.74, though the recent pullback could be attributed to market sentiment deterioration. Additionally, the Relative Strength Index (RSI) indicator, exiting from overbought conditions, could be one of the reasons, alongside plunging US Treasury bond yields.

That said, USD/JPY first support would be the 139.00 figure. A breach of the latter will expose the May 18 high, followed by the 138.00 figure. Next would be the confluence of a previous resistance trendline turned support and the 20-day EMA at 137.76.

Conversely, if buyers reclaim 140.00, that could open the door for further upside, like the year-to-date (YTD) high of 140.93, before challenging the 141.00 mark.

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.74 at the time of writing. Pair opened at 140.46 and is trading with a change of -0.51 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 136.99, 50 SMA 134.67, 100 SMA @ 133.6 and 200 SMA @ 137.24.

The previous day high was 140.92 while the previous day low was 140.11. The daily 38.2% Fib levels comes at 140.42, expected to provide resistance. Similarly, the daily 61.8% fib level is at 140.61, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 140.08, 139.69, 139.27
• Pivot resistance is noted at 140.88, 141.3, 141.69

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