#USDJPY @ 133.143 retreats from a two-week high, though lacks follow-through selling. (Pivot Orderbook analysis)

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• USD/JPY retreats from a two-week high, though lacks follow-through selling.
• The USD pares intraday gains on softer inflation data and acts as a headwind.
• The risk-on environment undermines the safe-haven JPY and to lends support.

The pair currently trades last at 133.143.

The previous day high was 132.97 while the previous day low was 132.21. The daily 38.2% Fib levels comes at 132.5, expected to provide support. Similarly, the daily 61.8% fib level is at 132.68, expected to provide support.

The USD/JPY pair surrenders a major part of its intraday gains to a two-week high and retreats below the 133.00 round-figure mark during the early North American session on Friday.

The modest intraday US Dollar (USD) uptick loses steam after the US Bureau of Economic Analysis reported that the Personal Consumption Expenditures (PCE) Price Index decelerated to a 5% YoY rate in February from 5.3% previous. Adding to this, the Core PCE Price Index – the Fed’s preferred inflation gauge – unexpectedly edged lower to a 4.6% YoY rate from 4.7% in January. The data adds to the uncertainty about the Fed’s rate-hike path, which acts as a headwind for the Greenback and prompts some intraday selling around the USD/JPY pair.

Bearish traders further took cues from a modest pullback in the US Treasury bond yields, which results in the narrowing of the US-Japan rate differential and benefits the Japanese Yen (JPY). That said, the underlying bullish tone around the global equity markets – amid easing fears of a full-blown banking crisis – continues to undermine the safe-haven JPY and remains supportive of a mildly positive tone around the USD/JPY pair. This, in turn, warrants caution for bearish traders and before positioning for any meaningful corrective pullback.

Friday’s US economic docket also features the release of the Chicago PMI and revised Michigan Consumer Sentiment Index, though might do little to provide any meaningful impetus. Nevertheless, the USD/JPY pair still seems poised to register weekly gains for the first time in the previous five and remains at the mercy of the USD price dynamics heading into the weekend.

Technical Levels: Supports and Resistances

USDJPY currently trading at 133.19 at the time of writing. Pair opened at 132.67 and is trading with a change of 0.39 % .

The pair is trading below its 20 Daily moving average @ 133.42, above its 50 Daily moving average @ 132.88 , below its 100 Daily moving average @ 133.93 and below its 200 Daily moving average @ 137.33

The previous day high was 132.97 while the previous day low was 132.21. The daily 38.2% Fib levels comes at 132.5, expected to provide support. Similarly, the daily 61.8% fib level is at 132.68, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 132.26, 131.85, 131.5
• Pivot resistance is noted at 133.02, 133.38, 133.79

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