#USDJPY @ 136.139 is expected to witness more losses below 136.00 as investors have ignored Fed’s bigger rate hike fears. (Pivot Orderbook analysis)

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• USD/JPY is expected to witness more losses below 136.00 as investors have ignored Fed’s bigger rate hike fears.
• The proposal of higher taxes by US Biden has spooked the interest of investors towards US equities.
• An unchanged monetary policy is expected from BoJ Kuroda.

The pair currently trades last at 136.139.

The previous day high was 137.91 while the previous day low was 136.48. The daily 38.2% Fib levels comes at 137.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 137.03, expected to provide resistance.

The USD/JPY pair is delivering a sideways performance above 136.00 in the early Asian session. The asset looks vulnerable above 136.00 and is expected to deliver a break below the same as investors have shrugged-off fears associated with expectations of bigger rates from the Federal Reserve (Fed).

Thursday’s Initial Jobless Claims data reported an 11% jump in the number of candidates claiming for the very first time. This was the highest jump in the past five months, which conveyed that the United States labor market is not tight enough as it appears to the market participants. The street believes that a mega jump in initial claims was the outcome of the mid-winter school break in New York. So it is a one-time blip and can be ignored.

The US Dollar Index (DXY) is juggling above 105.25 after a gradual correction from Wednesday’s high at 105.86. S&P500 futures witnessed an intense sell-off on Thursday as investors got distressed by high taxes proposed by US President Joe Biden on billionaires and rich investors. Citing the Budget as a blue-collar blueprint, more taxes on riches will be utilized for medical claims of retired individuals.

Squeezing fears for Fed’s blunt statement on using higher rates to bring down inflation also supported the demand for US government bonds. The alpha generated on 10-year US Treasury bonds dropped firmly to near 3.90%.

On the Japanese Yen front, investors are awaiting the interest rate decision by the Bank of Japan (BoJ) for fresh impetus. Analysts at TD Securities are of the view that “It is unlikely that the BoJ will rock the boat at this meeting even as CPI inflation hit a 41-year high. Governor Kuroda at his last meeting will likely keep policy unchanged, with further changes having to wait for incoming governor Ueda starting in April. We think the BoJ could shift the top end of the YCC band again in the months ahead, potentially as early as April.”

Technical Levels: Supports and Resistances

USDJPY currently trading at 136.12 at the time of writing. Pair opened at 137.25 and is trading with a change of -0.82 % .

The pair is trading above its 20 Daily moving average @ 134.86, above its 50 Daily moving average @ 132.27 , below its 100 Daily moving average @ 136.25 and below its 200 Daily moving average @ 137.43

The previous day high was 137.91 while the previous day low was 136.48. The daily 38.2% Fib levels comes at 137.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 137.03, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 136.51, 135.78, 135.08
• Pivot resistance is noted at 137.95, 138.64, 139.38

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