Market Research and Analysis

Daily Market Analysis Report

Thu, 29 Dec 2016 05:14 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 117.10 – 114.550
  • 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:
  • Sell Below 117.20

    Take Profit

    1st @ 116.45

    Stop Loss @ 117.45

USDJPY

USDJPY is trading at 114.91, down -0.09% on the day, having posted a daily high at 115.11 and low at 114.73. The dollar-yen pair amplifies its bearish energy into a moment straight session this Thursday, as the financial specialists nearly track the expansive USD-value activity, which saw an enormous auction because of reestablished shortcoming in the US treasury yields.  While, a lofty drop found in the Japanese stocks stays one of the key impetuses behind the most recent leg down in the major. USD/JPY pair is most recently seen trading hands at 117.75, withdrawing marginally from session lows hit at 116.68, still down – 0.41% on the day.

29-dec-jpy
Fundamental Overview

Japanese industrial production rose November, after flat-lining the previous month, preliminary data showed on Wednesday. Industrial production climbed 1.5% in November, the Ministry of Economy, Trade and Industry said in a preliminary report. A median estimate of economists forecast a 1.8% increase. Compared to a year ago, industrial production rose 4.6%, official data showed. Output was revised down to zero in October. Preliminary estimates had showed a 0.1% increase. Japanese manufacturers have battled strong headwinds all year long, but sentiment appears to be improving in the wake of the yen.

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

JPY

  • BOJ Summary of Opinions

USD

  • Unemployment Claims

Technical Overview

Technically, the USDJPY dipped to trade at 116.850. Further, the pair is consolidating at a very strong support level of 116.750, forming a double bottom. Break below this level, can lead the pair towards next target level of 116.10. At present, the pair has completed 50% retracement at Fibonacci level of 116.733. RSI value is slightly bearish at 34 with a shift from 57. The support prevails at 116.456 and 115.85. Moreover, a long-term resistance is found around 117.175 and 118.450.

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