Market Research and Analysis

Daily Market Analysis Report

Wed, 21 Dec 2016 03:54 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:
  • (Still Active)
    Sell Below 117.650
    Take Profit
    1st @ 117.10
    Stop Loss @ 117.85


USDJPY is trading at 117.87, up 0.04% on the day, having posted a daily high at 117.95 and low at 117.71. The pair solidified in a moderate Asia today after hazard on business sectors took the Dow to its nearest vicinity to the 20,000 check yet, fueled by theory of Trump’s proposed strategies will be certain for stocks as a rule. The yen is subsequently experiencing considerable difficulties late and the dollar turns out top, supported by the late hawkishness from the FOMC.

Fundamental Overview

At the Monetary Policy Meeting held today, the Policy Board of the Bank of Japan decided upon the following. Yield curve control The Bank decided, by a 7-2 majority vote, to set the following guideline for market operations for the intermeeting period. The short-term policy interest rate: The Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank. The long-term interest rate: The Bank will purchase Japanese government bonds (JGBs) so that 10-year JGB yields will remain at around zero percent.

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


  • All Industries Activity m/m


  • Existing Home Sales

Technical Overview

USDJPY broke out if its consolidation range of 118.200- 117.700 and trading well below it. Technical outlook for the pair remains bearish along with fundamentals, supporting the JPY.  At present, the pair has completed 50% retracement at Fibonacci level of 116.733. RSI value is bullish at 55 with a slight downward shift from 57, representing a buying trend in the pair. The support prevails at 116.456 and 115.85 with a trading range of 119.10 – 115.550. Moreover, a long-term resistance is found around 118.450 and 119.250.

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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.