#USDJPY @ 135.934 is oscillating around 136.00, downside looks favored amid the risk-on mood. (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 oscillating around 136.00, downside looks favored amid the risk-on mood.
• An upbeat market mood has pushed the 10-year US Treasury yields below 3.96%.
• The BoJ is expected to remain dovish as current inflationary pressures in Japan are the outcome of international forces.

The pair currently trades last at 135.934.

The previous day high was 136.19 while the previous day low was 135.37. The daily 38.2% Fib levels comes at 135.88, expected to provide support. Similarly, the daily 61.8% fib level is at 135.68, expected to provide support.

The USD/JPY pair is displaying a back-and-firth action around 136.00 in the early European session. The asset has turned sideways as investors are awaiting fresh triggers for further guidance. Right from Federal Reserve (Fed) chair Jerome Powell’s testimony to the interest rate decision by the Bank of Japan (BoJ) and the United States Employment report, plenty of events will be held this week.

Meanwhile, S&P500 futures have picked some bids after a choppy Monday, portraying a cheerful market mood. The US Dollar Index (DXY) is demonstrating signs of recovery after printing a day low at 104.16. The USD Index bulls could retreat amid the risk appetite theme, underpinned by the market participants. An upbeat market mood has also improved demand for US government bonds and has pushed the 10-year US Treasury yields below 3.96%.

Two-day Fed Powell’s testimony before Congress will provide meaningful cues. The street is having mixed responses toward commentary as one school of thought expects a hawkish commentary amid higher inflationary pressures while the other school of thought sees a neutral stance as many things bank upon February’s data.

Going ahead, if United States inflation continues to persist, the Unemployment Rate remains at lower levels, and consumer spending remains resilient, Fed Powell would have no other option than to push rates higher.

On the Tokyo front, the interest rate decision by the BoJ will remain in action. The BoJ is expected to remain dovish as current inflationary pressures in Japan are the outcome of international forces as the economy is struggling to accelerate wages and domestic growth.

Technical Levels: Supports and Resistances

USDJPY currently trading at 135.99 at the time of writing. Pair opened at 135.99 and is trading with a change of 0.0 % .

The pair is trading above its 20 Daily moving average @ 134.27, above its 50 Daily moving average @ 132.15 , below its 100 Daily moving average @ 136.5 and below its 200 Daily moving average @ 137.35

The previous day high was 136.19 while the previous day low was 135.37. The daily 38.2% Fib levels comes at 135.88, expected to provide support. Similarly, the daily 61.8% fib level is at 135.68, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 135.51, 135.03, 134.69
• Pivot resistance is noted at 136.33, 136.67, 137.15

[/s2If]
Join Our Telegram Group