#USDJPY @ 132.503 advanced sharply toward 132.40 on Monday, spurred by a risk-on impulse. (Pivot Orderbook analysis)

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• USD/JPY advanced sharply toward 132.40 on Monday, spurred by a risk-on impulse.
• The daily chart suggests the pair as neutral-upwards biased.
• Short term, the USD/JPY 4-hour chart, depicts the pair would trade within 131.80-133.00.

The pair currently trades last at 132.503.

The previous day high was 131.89 while the previous day low was 129.81. The daily 38.2% Fib levels comes at 130.6, expected to provide support. Similarly, the daily 61.8% fib level is at 131.09, expected to provide support.

The USD/JPY climbs as the New York session progresses, up by 0.77%, hitting a new six-week high at 132.90. Nevertheless, the major failed to hold to its gains and was rejected toward the 132.40 area. At the time of writing, the USD/JPY is trading at 132.44.

From a daily chart perspective, the USD/JPY climbed and pierced the last week’s high around 132.90 to retreat to 132.50s. The USD/JPY retracement was spurred by the 50-day Exponential Moving Average (EMA) At 132.66; albeit broken, the USD/JPY pair slid beneath the latter. Although the pair is trading off the day’s high, the USD/JPY bias in the near term is tilted to the upside.

Zooming into the 4-hour chart, after the USD/JPY consolidated during the last week in the 130.30-131.80 area, it broke the top of the range, but solid resistance around 133.00, capped the USD/JPY rally. Nevertheless, the USD/JPY might begin trading in a higher range, within the 131.80-133.00 area, ahead of US inflation data to be revealed on Tuesday, around 13:30 GMT

If the report shows that inflation continues to edge lower, the USD/JPY could aim toward the 200-EMA at 131.49, ahead of the 131.00 figure. Once those demand areas are cleared, the 100-EMA would be exposed at 130.84.

Conversely, higher-than-expected inflation would pave the way for further upside. Therefore, the USD/JPY first resistance would be 133.00. Break above, and the 134.00 figure is next, followed by the January 6 high at 134.77.

Technical Levels: Supports and Resistances

USDJPY currently trading at 132.5 at the time of writing. Pair opened at 131.41 and is trading with a change of 0.83 % .

The pair is trading above its 20 Daily moving average @ 130.09, above its 50 Daily moving average @ 132.27 , below its 100 Daily moving average @ 138.2 and below its 200 Daily moving average @ 136.83

The previous day high was 131.89 while the previous day low was 129.81. The daily 38.2% Fib levels comes at 130.6, expected to provide support. Similarly, the daily 61.8% fib level is at 131.09, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 130.18, 128.96, 128.1
• Pivot resistance is noted at 132.27, 133.12, 134.35

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