#USDJPY @ 131.013 The reached a six-month low at 129.50 but recovered some ground, albeit US Treasury yields fell. (Pivot Orderbook analysis)

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• The USD/JPY reached a six-month low at 129.50 but recovered some ground, albeit US Treasury yields fell.
• USD/JPY Price Analysis: Downward biased, but short term might test the 20-day EMA around 133.76.

The pair currently trades last at 131.013.

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 support. Similarly, the daily 61.8% fib level is at 130.94, expected to provide support.

The USD/JPY climbs sharply after dropping to eight-month low levels, last seen in June 2021 around 129.50, at around 130.90s, as the US Dollar (USD) emerges as the strongest currency in Tuesday trading. Therefore, the USD/JPY is trading at 131.01, above its opening price by 0.25%.

On Tuesday, the USD/JPY daily chart portrays the pair as downward biased. However, Tuesday’s price action formed a hammer preceded by a downtrend, suggesting that buyers outpaced sellers, suggesting that the USD/JPY might print a leg-up before continuing its downtrend. The bias would remain intact as long as the USD/JPY stays below the 20-day Exponential Moving Average (EMA) at 133.76. Otherwise, it would pave the way for a test of the 200-day EMA at 134.83, which, once cleared, could send the USD/JPY rallying to the 50-day EMA at 137.04

Oscillators like the Relative Strength Index (RSI) remain in bearish territory, while the Rate of Change (RoC) displays selling pressure waning.

Therefore, the USD/JPY first resistance would be the 132.00 mark. A breach of the latter would expose the December 30 daily high of 133.09, followed by the 20-day EMA at 133.76..

Technical Levels: Supports and Resistances

USDJPY currently trading at 131.04 at the time of writing. Pair opened at 130.72 and is trading with a change of 0.24 % .

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 support. Similarly, the daily 61.8% fib level is at 130.94, expected to provide support.

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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