#USDJPY @ 144.330 is in overbought conditions, but the BoJ’s dovish stance would keep the yen weak. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• USD/JPY is in overbought conditions, but the BoJ’s dovish stance would keep the yen weak.
• A clear break of 145.00 would send the major rallying toward August 1998 at 147.67.

The pair currently trades last at 144.330.

The previous day high was 143.5 while the previous day low was 142.13. The daily 38.2% Fib levels comes at 142.97, expected to provide support. Similarly, the daily 61.8% fib level is at 142.65, expected to provide support.

The USD/JPY rallied after the US Department of Labor reported that inflation was decelerating but exceeding estimations, catching off USD/JPY traders expecting a lower reading. At the time of writing, the USD/JPY is trading at 144.43, up by 1.09%.

After the US inflation report struck newswires, the USD/JPY rallied towards the daily highs at 144.68. Worth noting that, albeit being upward biased, the Relative Strength Index (RSI), alongside price action, shows signs that the USD/JPY is overbought. Nevertheless, the Bank of Japan’s dovish stance would likely pressure the Japanese yen, opening the door for the August 1998 test at 147.67.

Short term, the USD/JPY one-hour scale depicts the major testing of September’s 8 daily high at 144.44. A clear break would expose September 7 daily high at 144.56, followed by the YTD high at 144.99. On the other hand, the USD/JPY first support would be the 144.00 figure. Once cleared, the next support would be the R1 daily pivot at 143.50, followed by the 100 and 20-EMAs at around 143,18 – 143.05 area, respectively. A breach of the latter would expose the Daily pivot at 142.81.

Technical Levels: Supports and Resistances

USDJPY currently trading at 144.43 at the time of writing. Pair opened at 142.84 and is trading with a change of 1.11 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 139.06, 50 SMA 136.98, 100 SMA @ 134.21 and 200 SMA @ 125.87.

The previous day high was 143.5 while the previous day low was 142.13. The daily 38.2% Fib levels comes at 142.97, expected to provide support. Similarly, the daily 61.8% fib level is at 142.65, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 142.15, 141.46, 140.78
• Pivot resistance is noted at 143.51, 144.19, 144.88

[/s2If]
Join Our Telegram Group