Market Research and Analysis

Daily Market Analysis Report

Mon, 02 Jan 2017 07:05 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 117.10 – 114.550
  • Support & Resistance Levels:
  • R3:     119.06

    R2:     118.41

    R1:     118.01

    Pivot Point:     117.36

    S1:     116.71

    S2:     116.31

    S3:     115.66

  • Trading Recommendation:
  • Buy Above 116.50

    Take Profit

    1st @ 117.15

    Stop Loss @ 116.35

USDJPY

USDJPY pair dove last Friday to a 2-week low of 116.04, recouping a short time later, yet discovering offering enthusiasm on efforts to progress past 117.00. The pair figured out how to shut in the green, hardly bring down for the week, yet on track to progress facilitate, as this most recent occasion’s retracement, in the wake of ascending for seven back to back weeks, has been for the most lukewarm. Helping the yen, were lower yields, as the US 10-year Treasury benchmark tumbled to 2.45%, withdrawing further from the two-year high of 2.56% accomplished last December.

2-jan-jpy
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 Monday, the investors are recommended to monitor the following events:

JPY

  • No Economic Event Expected

USD

  • Chicago PMI

Technical Overview

USDJPY remained slightly bullish and traded at 116.800. 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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