#USDJPY @ 136.343 is advancing towards 137.00 amid the Japanese Yen’s weakness due to dovish BoJ commentaries. (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 advancing towards 137.00 amid the Japanese Yen’s weakness due to dovish BoJ commentaries.
• The major contributor to the elevated inflation in the Japanese economy is the higher import prices.
• S&P500 futures have extended their losses after a bearish Tuesday, portraying a further decline in investors’ risk appetite.

The pair currently trades last at 136.343.

The previous day high was 136.92 while the previous day low was 135.73. The daily 38.2% Fib levels comes at 136.19, expected to provide support. Similarly, the daily 61.8% fib level is at 136.47, expected to provide resistance.

The USD/JPY pair has extended its recovery above 136.26 in the Asian session. The responsive buying action in the asset from 135.80 looks so confident amid weakness in the Japanese Yen as Bank of Japan (BoJ) policymakers are considering the current expansionary monetary policy as appropriate to maintain the 2% inflation confidently.

National Consumer Price Index (CPI) in Japan has reached to multi-decade high near 4.2%. However, the major contributor to the elevated inflation is the higher import prices, not the strong wage gains and any resilience in the domestic demand. Therefore, the BoJ policymakers are advocating more stimulus in the economy so that the pre-pandemic growth levels could be achievable.

After dovish commentary from BoJ Governor Nominee Kazuo Ueda, BoJ Deputy Governor Ryozo Himino favored the sustenance of easy monetary policy to spurt the overall demand in the Japanese economy. However, he assured that a time will come when an exit from the ultra-loose monetary policy will be optimal.

Meanwhile, the risk profile is also not supporting the risk-sensitive assets as more rate hikes are highly expected from the Federal Reserve to strengthen its competence against the stick United States inflation. S&P500 futures have extended their losses after a bearish Tuesday, portraying a further decline in the risk appetite of the market participants.

The US Dollar Index (DXY) is gathering strength to stretch its upside momentum above 104.60 ahead. The USD Index is expected to display a power-pack action after the release of the US ISM Manufacturing PMI data. The street is anticipating a continuation of the contraction spell ahead.

Technical Levels: Supports and Resistances

USDJPY currently trading at 136.38 at the time of writing. Pair opened at 136.14 and is trading with a change of 0.18 % .

The pair is trading above its 20 Daily moving average @ 133.1, above its 50 Daily moving average @ 131.86 , below its 100 Daily moving average @ 136.97 and below its 200 Daily moving average @ 137.18

The previous day high was 136.92 while the previous day low was 135.73. The daily 38.2% Fib levels comes at 136.19, expected to provide support. Similarly, the daily 61.8% fib level is at 136.47, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 135.61, 135.08, 134.42
• Pivot resistance is noted at 136.79, 137.45, 137.98

[/s2If]
Join Our Telegram Group