#USDJPY @ 139.177 has found a fragile cushion around 139.10 after a recovery in the US Dollar Index. (Pivot Orderbook analysis)

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• USD/JPY has found a fragile cushion around 139.10 after a recovery in the US Dollar Index.
• Investors seem puzzled after crucial US economic indicators as they have divided the street about Fed’s policy.
• BoJ Ueda is committed to continuing quantitative easing until the achievement of the inflation target.

The pair currently trades last at 139.177.

The previous day high was 140.45 while the previous day low was 139.25. The daily 38.2% Fib levels comes at 139.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.99, expected to provide resistance.

The USD/JPY pair has found an intermediate cushion around 139.00 in the London session. The downside momentum in the asset has been intervened as the US Dollar Index (DXY) has displayed a decent recovery move after defending the crucial support around 103.80.

S&P500 futures are showing nominal losses in Europe, portraying a cautious market mood. Investors seem puzzled after crucial United States economic indicators for May as they have divided the street about Federal Reserve (Fed)’s interest rate policy for June month.

The USD Index is making efforts for keeping its auction comfortable above 104.00. Investors are mixed about Fed’s policy as the consistent addition of fresh payrolls in the labor market is expected to keep spending levels at a peak, which would result in demand-pull inflation. While weakening scale of economic activities supports a neutral interest rate policy to avoid the United States economy from falling into recession.

Meanwhile, lending from US commercial banks is still higher despite soaring interest rates by the Fed. In a CNBC interview on Monday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that “We don’t yet see a significant slowdown in lending.” She further added, “There is some, but not on the scale that would lead to the Fed stepping back,”

The Japanese Yen is still getting strength despite dovish commentary from Bank of Japan (BoJ) Governor Kazuo Ueda. BoJ Ueda said the central bank will continue quantitative easing until the achievement of the inflation target,” He further added changes are emerging gradually to a deflationary mindset that prices and wages are hard to rise.

Technical Levels: Supports and Resistances

USDJPY currently trading at 139.21 at the time of writing. Pair opened at 139.58 and is trading with a change of -0.27 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 138.09, 50 SMA 135.48, 100 SMA @ 134.07 and 200 SMA @ 137.3.

The previous day high was 140.45 while the previous day low was 139.25. The daily 38.2% Fib levels comes at 139.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 139.99, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 139.07, 138.56, 137.87
• Pivot resistance is noted at 140.27, 140.96, 141.48

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