#USDJPY @ 135.942 is trading almost flat following Monday’s session. (Pivot Orderbook analysis)

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• USD/JPY is trading almost flat following Monday’s session.
• US Federal Reserve Chairman Jerome Powell is expected to reiterate the Fed’s commitment to inflation.
• A weaker US Dollar and rising UST bond yields capped the USD/JPY movement.

The pair currently trades last at 135.942.

The previous day high was 136.79 while the previous day low was 135.74. The daily 38.2% Fib levels comes at 136.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.39, expected to provide resistance.

The USD/JPY registers minuscule gains as the Asian Pacific session opens after Monday’s session, printed a doji. A light US economic calendar and Federal Reserve’s (Fed) Chair Jerome Powell testifying before the US Congress will likely keep the pair within familiar levels. At the time of writing, the USD/JPY is exchanging hands at 135.91 after hitting on Monday a weekly low of 135.36.

Wall Street finished mixed, with the Dow Jones and the S&P 500 gaining between 0.07% and 0.12%. The Nasdaq printed losses of 0.11%. The greenback registered losses, of 0.22%, at 104.292. Contrary to UST bond yields. The 10-year benchmark note rate finished almost unchanged but in positive territory at 3.966%.

On March 7th and 8th, the Chair of the US Federal Reserve, Jerome Powell, is scheduled to testify before the US Congress. Market participants anticipate that he will give a speech reaffirming the Fed’s dedication to controlling inflation and keeping interest rates elevated for a certain period. However, analysts predict that if asked about the Federal Funds Rate (FFR) peak, Chair Powell may not provide a specific answer.

On the Japanese front, the upcoming policy meeting of the Bank of Japan (BoJ), scheduled for March 10th, would be Governor Kuroda’s final meeting. The markets believe he will use this opportunity to initiate policy normalization by adjusting the Yield Curve Control (YCC). Rabobank analysts commented that the BoJ would take a cautious approach to loosen conditions of the YCC, and it would be the first step towards monetary policy normalizations.

Technical Levels: Supports and Resistances

USDJPY currently trading at 135.92 at the time of writing. Pair opened at 135.83 and is trading with a change of 0.07 % .

The pair is trading above its 20 Daily moving average @ 134.1, above its 50 Daily moving average @ 132.08 , below its 100 Daily moving average @ 136.63 and below its 200 Daily moving average @ 137.31

The previous day high was 136.79 while the previous day low was 135.74. The daily 38.2% Fib levels comes at 136.14, expected to provide resistance. Similarly, the daily 61.8% fib level is at 136.39, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 135.46, 135.08, 134.41
• Pivot resistance is noted at 136.5, 137.17, 137.55

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