#USDJPY @ 131.858 is back in the red after seeing a dead cat bounce on Wednesday. (Pivot Orderbook analysis)

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• USD/JPY is back in the red after seeing a dead cat bounce on Wednesday.
• US Treasury yields retreat, dragging USD/JPY lower amid upbeat mood.
• Impending bull cross on the daily chart leaves the pair exposed to 131.00.

The pair currently trades last at 131.858.

The previous day high was 132.53 while the previous day low was 131.49. The daily 38.2% Fib levels comes at 132.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 131.89, expected to provide resistance.

USD/JPY is returning to the red zone below the 132.00 level early Thursday, fading a dead cat bounce seen on Wednesday. The renewed weakness in the US Dollar alongside the Treasury bond yields is weighing down on the currency pair.

The US Dollar is on a slippery slope, courtesy of the ‘Santa rally’ that kicked off on Wall Street, which is extending into the Asian markets. Meanwhile, the Yen resume its upward momentum, as the Japanese bond yields shifted into a new higher range.

The Bank of Japan (BoJ) announced an unscheduled bond-buying operation for the second straight day, which has failed to have any material impact on the USD/JPY pair so far.

Markets look past the upbeat US CB Consumer Confidence data, as all eyes now remain on the final revision to the US Q3 GDP, weekly Jobless Claims, Japanese inflation and BoJ minutes due on the cards in the balance of this week.

From a short-term technical perspective, USD/JPY is consolidating the downside, awaiting a fresh catalyst for a fresh leg lower.

The bearish 21-Daily Moving Average (DMA) is on the verge of cutting the mildly bullish 200DMA from above. A bull cross confirmation is what is needed for bears to accelerate control.

The 14-day Relative Strength Index (RSI) is sitting just above the oversold territory, suggesting that there is more room for a decline.

Immediate support awaits at the 131.00 round figure. Sellers will then target the four-month low of 130.57.

On the flip side, any recovery attempts will need to find acceptance above the 132.00 hurdle on a sustained basis. Recapturing Wednesday’s high at 132.53 is critical to unleashing the additional recovery toward the 133.00 barrier.

Technical Levels: Supports and Resistances

USDJPY currently trading at 131.88 at the time of writing. Pair opened at 132.35 and is trading with a change of -0.34 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 136.53, 50 SMA 141.79, 100 SMA @ 141.17 and 200 SMA @ 135.79.

The previous day high was 132.53 while the previous day low was 131.49. The daily 38.2% Fib levels comes at 132.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 131.89, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 131.72, 131.08, 130.68
• Pivot resistance is noted at 132.76, 133.17, 133.8

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