Market Research and Analysis

Daily Market Analysis Report

Mon, 12 Dec 2016 05:30 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 116.10 – 112.550
  • Support & Resistance Levels:
  • R3: 116.24
  • R2: 115.72
  • R1: 115.4
  • Pivot Point: 114.88
  • S1: 114.36
  • S2: 114.04
  • S3: 113.52
  • Trading Recommendation:
  • Buy Above 115.150
  • Take Profit
  • 1st @ 115.750
  • Stop Loss @ 114.80

USDJPY

USDJPY traded bullish at 115.350 after breaking out of its well-maintained narrow trading range of 114.650 – 113.10. The Economic figures released from Japan, especially Core Machinery Orders m/m can in favor of a single currency, but the Dollar is a too strong to consider another fundamental. The high to low movement remain 135 pips for the pair with a high of 115.359 and a low of 114.

12-dec-jpy
Fundamental Overview

The Core Machinery Orders m/m edge higher beating the expectations of 1.3% to 4.1%. The figure for occasionally balanced introductory cases was 258,000, a decline of 10,000 from the earlier week’s unrevised level of 268,000. The 4-week moving normally was 252,500, an expansion of 1,000 from the earlier week’s unrevised normal of 251,500. Facilitate, BSI Manufacturing Index stayed up at 2.9 when contrasted with past – 11.1, extending a slight support to JPY.

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

JPY

  • Core Machinery Orders m/m
    PPI y/y
    Tertiary Industry Activity m/m
    Prelim Machine Tool Orders y/y

USD

  • 10-y Bond Auction

Technical Overview

As suggested in the earlier report, the USDJPY formed an ascending triangle pattern in a H4, fueling sentiment of breakouts. It has broken out of the triangle pattern, representing a buying trend in the market. Moreover, a long-term resistance is found around 115.450.  Overall, the trading range remains at 116.630 – 113.300.

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