Market Research and Analysis

Daily Market Analysis Report

Fri, 16 Dec 2016 03:59 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 119.10 – 116.550
  • Support & Resistance Levels:
  • R3: 119.6
    R2: 118.97
    R1: 118.58
    Pivot Point: 117.94
    S1: 117.31
    S2: 116.92
    S3: 116.28
  • Trading Recommendation:
  • Buy Above 117.850
    Take Profit
    1st @ 118.600
    Stop Loss @ 117.65

USDJPY

USDJPY remained bullish on Thursday, continuing to trade higher at 118.158 to maintain the bullish momentum for the 2nd trading day. The US Dollar kept getting stronger on the FED Fund Rate Hike to 0.75% by 0.25% bp as well as more hawkish policy meeting than expected. Fed expects to increase the interest rates 3 times in 2017, rather than 2 times. The high to low movement remained 250 pips with a high of 117.363 and a low of 114.831.

16-dec-jpy
Fundamental Overview

Greenback remained strongly bullish as the movement got in December, as per the organizations reacting to the current month’s Manufacturing Business Outlook Survey. The files for general movement, shipments, and work were all positive this month and expanded from their readings a month ago. Makers were a great deal more hopeful about development throughout the following six months. The records for future business and capital spending likewise demonstrated a striking ascent. Most Current Indicators Show Improvement The list for current assembling movement in the district expanded from a perusing of 7.6 in November to 21.5 this month.

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

JPY

  • No Economic Release Expected

USD

  • Building Permits
  • Housing Starts
  • TIC Long-Term Purchases

Technical Overview

Technically, the USDJPY keeping a strong bullish trend on fundamentals.  At the movement, we can see another ascending triangle pattern in H1, giving us a trade setup for small profit takings. RSI value is bullish at 62, representing a buying trend in the pair. Moreover, a long-term resistance is found around 118.450 and 119.250. Whereas, the support prevails at 117.656 with a trading range of 119.10 – 115.550.

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There is a substantial risk of loss in trading commodity futures, option and off-change foreign currency products.
Read our General Risk Disclosure.