Market Research and Analysis

Daily Market Analysis Report

Fri, 30 Dec 2016 04:36 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 117.10 – 114.550
  • Support & Resistance Levels:
  • R3:     117.58

    R2:     117.22

    R1:     117

    Pivot Point:     116.64

    S1:     116.28

    S2:     116.06

    S3:     115.7

  • Trading Recommendation:
  • Buy Above 116.50

    Take Profit

    1st @ 117.15

    Stop Loss @ 116.35


USDJPY pair switching more than 150-pips from yesterday’s pinnacle and dropping to test the most minimal level since Dec. 14. The pair, in any case, has ricocheted off around 15-pips from session through and is right now exchanging around 116.35-40 area. Wednesday’s weaker home deals information from the US flagged that the lodging business sector could lose steam in front of the New Year and gave financial specialists’ a reason to take a few benefits off US Dollar bullish wagers.

Fundamental Overview

The Bank of Japan’s latest Summary of Opinions was a moderately upbeat affair The Yen duly made some hay, taking USD/JPY below the 117 handle However, big question marks still loom over consumer confidence and, crucially, inflation The Japanese Yen strengthened against the US Dollar on Thursday after the release of a moderately upbeat Summary of Opinions from the Bank of Japan, with USDJPY sliding under 117.00. Japan’s economy is on a “moderate recovery” path, helped by stronger exports and industrial production, according to the BOJ.

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


  • No Economic Event Expected


  • Chicago PMI

Technical Overview

Technically, the USDJPY dipped to trade at 116.750. 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 117.175and 118.450.

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