Market Research and Analysis

Daily Market Analysis Report

Thu, 08 Dec 2016 03:50 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 116.10 – 112.550
  • Support & Resistance Levels:
  • R3: 114.84
  • R2: 114.47
  • R1: 114.23
  • Pivot Point: 113.85
  • S1: 113.48
  • S2: 113.24
  • S3: 112.86
  • Trading Recommendation:
  • Sell Below 113. .85
  • Take Profit
  • 1st @ 113.250
  • Stop Loss @ 114.00


USDJPY edge lower on Wednesday in the absence of any major economic event from the U.S. The pair is trading at 113.480 falling 104 pips after placing a high. Economic events released from Japan in the early trading sessions are in favor, especially the Current Account Balance that came greater than the expected one. The high to low movement remain 104 pips for the pair with a high of 114.396 and a low of 113.406.

Fundamental Overview

Japan’s economy expanded much slower than initially expected in the third quarter, raising renewed fears about a dwindling recovery. Gross domestic product (GDP) expanded just 0.3% in July-September and 1.3% annually, the Cabinet Office said on Thursday in a revised estimate. That’s down sharply from preliminary estimates of 0.5% quarter-on-quarter and 2.2% annually. Economists forecast an upward revision to both indicators.

Today on Thursday, the investors are recommended to monitor the following events:


  • Current Account
  • Final GDP q/q
  • Bank Lending y/y
  • Final GDP Price Index y/y
  • 30-y Bond Auction
  • Economy Watchers Sentiment


  • Consumer Credit m/m
  • Unemployment Claims
  • Natural Gas Storage

Technical Overview

USDJPY is consolidating in a well maintained trading range of 114.630 – 113.300. The pair has broken below a strong trend line support in H4 and RSI value has shifted further lower at 44 from 55, demonstrating in selling stance. Currently, the resistance prevails at 113.80 and 114.20. Whereas the supports remains at 113.24 and 112.85.

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