Market Research and Analysis

Daily Market Analysis Report

Wed, 28 Dec 2016 04:48 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 is trading at 117.46, up 0.00% on the day, having posted a daily high at 117.56 and low at 117.41. The pair is flat in occasion mode after a moderate US session where stocks climbed by the by as the Trump and FOMC buildup proceeds keeping in mind speculators who are exchanging today make feed while the Trump-sun sparkles. The Yen was unaffected by the late CPI’s and today’s IP that arrived higher than past. Further economies are not likely to release any major economic event today on Wednesday, another reason for the market to stay calm.

28-dec-jpy
Fundamental Overview

Japan’s core consumer prices marked the ninth straight month of annual declines in November, data showed on Tuesday, suggesting that the economy still lacks enough momentum to jump-start inflation toward the central bank’s ambitious 2 percent target. Separate data showed household spending fell even as job availability hit a fresh 25-year high, underscoring the fragile nature of the economic recovery. The core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, slipped 0.4 percent in November from a year earlier, government data showed.

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

JPY

  • Prelim Industrial Production m/m
  • Retail Sales y/y

USD

  • Pending Home Sales m/m

Technical Overview

Technically, the USDJPY trades slightly bullish at 117.600 opposing it’s 3 consecutive trading day bearish momentum. 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 57 with a slight upward shift from 47. 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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