#USDJPY @ 129.888 hit fresh six-month lows below 130.00 in Asia this Tuesday. (Pivot Orderbook analysis)

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• USD/JPY hit fresh six-month lows below 130.00 in Asia this Tuesday.
• The Japanese yen rallied on BoJ speculation and negative Asian stock markets.
• The US Dollar rebound cushions the downside in USD/JPY ahead of US PMI.

The pair currently trades last at 129.888.

The previous day high was 131.13 while the previous day low was 130.62. The daily 38.2% Fib levels comes at 130.82, expected to provide resistance. Similarly, the daily 61.8% fib level is at 130.94, expected to provide resistance.

USD/JPY is under intense selling pressure near the 130.00 level, having hit fresh six-month lows at 129.82 in the last hour. The sudden downturn got triggered after the pair faced rejection at daily highs of 131.40, witnessing a wild swing of around 160 pips in a couple of hours.

The downswing in the pair was mainly triggered by a fresh spurt of the Japanese Yen buying, as the US equity futures skidded at the open and bolstered the safe-haven flows into the Yen. Moreover, speculation surrounding the potential for a hawkish pivot by the Bank of Japan (BoJ) to tackle inflation could be attributed to the massive JPY strength in early trades.

Lower liquidity due to a public holiday in Japan also exaggerated the moves in the major. Looking ahead, the US S&P Global Manufacturing PMI will be eyed, as it’s the first macroeconomic release out of the US at the start of 2023. Although the US Federal Reserve December meeting minutes, due on Wednesday, will grab attention, as it would show many members saw risks that interest rates would need to go higher for longer.

Technical Levels: Supports and Resistances

USDJPY currently trading at 130.1 at the time of writing. Pair opened at 130.72 and is trading with a change of -0.5 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 134.6, 50 SMA 139.2, 100 SMA @ 141.08 and 200 SMA @ 136.26.

The previous day high was 131.13 while the previous day low was 130.62. The daily 38.2% Fib levels comes at 130.82, expected to provide resistance. Similarly, the daily 61.8% fib level is at 130.94, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 130.52, 130.31, 130.0
• Pivot resistance is noted at 131.03, 131.34, 131.55

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