#USDJPY @ 144.839 is oscillating below 145.00 as the focus has shifted to US ISM Services PMI data. (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 oscillating below 145.00 as the focus has shifted to US ISM Services PMI data.
• More development on the Japan-North Korea tension story will display the forward outlook.
• The headline Tokyo CPI slipped to 23.8% while the core catalyst improved to 1.7%.

The pair currently trades last at 144.839.

The previous day high was 145.32 while the previous day low was 144.16. The daily 38.2% Fib levels comes at 144.6, expected to provide support. Similarly, the daily 61.8% fib level is at 144.88, expected to provide resistance.

The USD/JPY pair is displaying a lackluster performance after picking bids to near 144.40 in the Tokyo session. For the past week, the asset is displaying back-and-forth moves in a 144.00-145.35 range amid the unavailability of a potential trigger. The investing community is aware of the fact that the US dollar index (DXY) is auctioning in a negative trajectory for the past week, however, the USD/JPY asset has remained sideways, which indicates that the yen bulls are extremely weak.

The yen bulls are expected to weaken further amid escalating Japan-North Korea tensions as North Korean leader Kim Jong-un is firing ballistic missiles over Japan. The attack was near the Japanese region, which forced the administration to make security alerts and urged households to take shelter.

In retaliation to that, Japan’s Prime Minister Fumio Kishida cited the launch as ‘violent behavior’. While Japan’s defense minister Yasukazu Hamada has cleared that Tokyo would not rule out any options to strengthen its defenses including “counterattack capabilities”, reported BBC news.

In early Asia, Tokyo Consumer Price Index (CPI) data didn’t make much impact on the major. The headline CPI remained lower at 2.8% than the projections of 3.0% and the prior release of 2.9%. While the core CPI that excludes food and energy escalated to 1.7% vs. the expectations of 1.5% and the prior print of 1.4%.

Meanwhile, the US dollar index (DXY) is awaiting the release of the US ISM Services PMI data. The economic data is seen lower at 56 vs. the previous reading of 56.9. Also, the New Orders Index data will trim significantly to 58.9 against the prior release of 61.8.

Technical Levels: Supports and Resistances

USDJPY currently trading at 144.8 at the time of writing. Pair opened at 144.53 and is trading with a change of 0.19 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 143.71, 50 SMA 139.0, 100 SMA @ 136.35 and 200 SMA @ 128.12.

The previous day high was 145.32 while the previous day low was 144.16. The daily 38.2% Fib levels comes at 144.6, expected to provide support. Similarly, the daily 61.8% fib level is at 144.88, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 144.02, 143.5, 142.85
• Pivot resistance is noted at 145.18, 145.84, 146.35

[/s2If]
Join Our Telegram Group