#USDJPY @ 143.282 Dollar gains versus yen even as markets tumble. (Pivot Orderbook analysis)

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• Dollar gains versus yen even as markets tumble.
• Higher Treasury yields offset risk aversion.
• USD/JPY slowly recovering ground after the intervention decline.

The pair currently trades last at 143.282.

The previous day high was 145.9 while the previous day low was 140.35. The daily 38.2% Fib levels comes at 142.47, expected to provide support. Similarly, the daily 61.8% fib level is at 143.78, expected to provide resistance.

The USD/JPY is rising on Friday amid tensions across financial markets. The pair found support above 142.50 and it is testing daily highs near the 143.20 area. The rally of the dollar across the board remains solid and firm.

Usually, when markets drop sharply the yen is the best performer but is not the case on Friday. The dollar is the best performer. It confirmed gains following the better-than-expected PMI S&P Global numbers for September. The DXY is approaching 113.00, up 1.30% while EUR/USD and GBP/USD trade at fresh cycle lows.

The USD/JPY is about to end the week with a modest gain and far from the top. The intervention from Japanese authorities to boost the yen explains the move away from the recent multi-year highs. The pair peaked at 145.89 before pulling back.

The key driver in the rally continues to be the divergence in monetary policy between the Bank of Japan and the Federal Reserve. The BoJ kept its accommodative policy unchanged on Thursday while the Fed raised interest rates by 75 basis points.

“The immediate reaction to the intervention announcement facilitated a sharp rally in the Japanese currency and brought the yen back from record low levels against the dollar. However, we view BoJ intervention as only a temporary respite for the yen. In our view, as long as the paths for monetary policy between the Fed and BoJ continue to diverge and interest rate differentials widen, the bias remains for the yen to continue to weaken and retest lows in the near future”, said analysts at Wells Fargo.

Technical Levels: Supports and Resistances

USDJPY currently trading at 143.07 at the time of writing. Pair opened at 142.36 and is trading with a change of 0.5 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 141.93, 50 SMA 138.04, 100 SMA @ 135.33 and 200 SMA @ 127.06.

The previous day high was 145.9 while the previous day low was 140.35. The daily 38.2% Fib levels comes at 142.47, expected to provide support. Similarly, the daily 61.8% fib level is at 143.78, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 139.84, 137.32, 134.29
• Pivot resistance is noted at 145.4, 148.43, 150.95

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