#USDJPY @ 131.595 US economic data triggered a rally in US Treasury bonds. (Pivot Orderbook analysis)
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- US economic data triggered a rally in US Treasury bonds.
- DXY boke below 102.00 to the lowest since early February.
- USD/JPY drops for the second day in a row, down more than 200 pips from the weekly high.
The pair currently trades last at 131.595.
The previous day high was 133.76 while the previous day low was 132.2. The daily 38.2% Fib levels comes at 132.8, expected to provide resistance. Similarly, the daily 61.8% fib level is at 133.16, expected to provide resistance.
The USD/JPY fell sharply after the release of US economic data pointed to a slowdown. The pair tumbled from 132.80 to 131.53, reaching the lowest since March 29.
The pair remains under pressure under 131.80, with the US Dollar weaker across the board. The DXY is falling 0.48%, trading at 101.57, on its way to the second-lowest daily close since May 2022.
The JOLTs report showed a decline to 9.9 million job openings, the lowest reading in two years. In a different report, Factory Orders dropped for the second month in a row, by 0.7% below the slide expected of 0.5%. The ADP Employment report and the ISM Service Sector PMI are due on Wednesday.
After the reports, US yields sank. The US 10-year yield dropped to 3.35% and the 2-year to 3.84%. The moves in the bond market boosted the Japanese currency which rose across the board.
Technical indicators in USD/JPY 4-hour chart point to another test of the daily lows around 131.50. A break lower would expose the next support that is seen at the 131.10 area. The Dollar needs to regain levels above 132.50 to alleviate the bearish pressure.
Technical Levels: Supports and Resistances
USDJPY currently trading at 131.78 at the time of writing. Pair opened at 132.41 and is trading with a change of -0.48 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 131.78 |
| 1 | Today Daily Change | -0.63 |
| 2 | Today Daily Change % | -0.48 |
| 3 | Today daily open | 132.41 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 133.09, 50 SMA 132.98, 100 SMA @ 133.8 and 200 SMA @ 137.3.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 133.09 |
| 1 | Daily SMA50 | 132.98 |
| 2 | Daily SMA100 | 133.80 |
| 3 | Daily SMA200 | 137.30 |
The previous day high was 133.76 while the previous day low was 132.2. The daily 38.2% Fib levels comes at 132.8, expected to provide resistance. Similarly, the daily 61.8% fib level is at 133.16, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 131.82, 131.24, 130.27
- Pivot resistance is noted at 133.38, 134.34, 134.93
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 133.76 |
| Previous Daily Low | 132.20 |
| Previous Weekly High | 133.60 |
| Previous Weekly Low | 130.41 |
| Previous Monthly High | 137.91 |
| Previous Monthly Low | 129.64 |
| Daily Fibonacci 38.2% | 132.80 |
| Daily Fibonacci 61.8% | 133.16 |
| Daily Pivot Point S1 | 131.82 |
| Daily Pivot Point S2 | 131.24 |
| Daily Pivot Point S3 | 130.27 |
| Daily Pivot Point R1 | 133.38 |
| Daily Pivot Point R2 | 134.34 |
| Daily Pivot Point R3 | 134.93 |
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