Market Research and Analysis

Daily Market Analysis Report

Tue, 27 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

USDJPY pair is on a roll higher in the Asian session this Tuesday, having found renewed bids just ahead of the daily pivot located at 117.15, which triggered an almost 20-pips rally post-Tokyo open. It mostly traded muted with a slight shift in the exchange rate to 117.298. As suggested in the previous reports, the market is consolidating in a narrow trading range of 118.335 – 116.950 before the Christmas, and it is likely to remain mostly unchanged until the end of New Year holidays. Further economies are not likely to release any major economic event today on Tuesday, another reason for the market to stay calm.

27-dec-jpy
Fundamental Overview

New U.S. single-family home sales rose more than expected in November, reaching their highest level in four months, likely as expectations of higher mortgage rates drew buyers into the market. The Commerce Department said on Friday new home sales increased 5.2 percent to a seasonally adjusted annual rate of 592,000 units last month. October’s sales pace was unrevised at 563,000 units. Economists polled by Reuters had forecast single-family home sales, which account for about 9.5 percent of overall home sales, rising 2.1 percent to a 575,000-unit rate last month.

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

JPY

  • Household Spending y/y
  • Tokyo Core CPI y/y
  • National Core CPI y/y
  • Unemployment Rate
  • BOJ Core CPI y/y
  • Housing Starts y/y

USD

  • CB Consumer Confidence

Technical Overview

USDJPY trades slightly bearish at 117.300 maintaining it weak bearish momentum for 3rd consecutive trading day. Further, it still trades below a narrow trading range of 118.200- 117.700. At present, the pair has completed 50% retracement at Fibonacci level of 116.733. RSI value is slightly bearish at 49 with a slight downward shift from 57. 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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