Market Research and Analysis

Daily Market Analysis Report

Wed, 11 Jan 2017 05:08 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 119.10 – 115.550
  • Support & Resistance Levels:
  • R3: 118.2
    R2: 117.36
    R1: 116.83
    Pivot Point: 115.99
    S1: 115.15
    S2: 114.62
    S3: 113.78
  • Trading Recommendation:
  • Buy Above 116.250
    Take Profit
    1st @ 116.70
    Stop Loss @ 115.90

USDJPY

USDJPY is trading at 116.17, down -0.05% on the day, having posted a daily high at 116.12 and low at 115.66. USDJPY pair returned to 117.53 at the start of the day but reversed course mid-European morning with the Japanese yen stimulating its rise in the US session, following the poor performance of American stocks and bonds. The return on the benchmark 10-year Treasuries fell 3 basis points to 2.38%, whilst the 30-year bond return was 3 basis points beneath at 2.97%, as fears about a “hard Brexit” and Chinese woes fueled demand for safe-haven assets.

11-jan-jpy
Fundamental Overview

After several months of tepid growth in the revolving consumer credit, i.e., credit card, space, the latest monthly report from the Fed revealed that Americans went on a credit card-funded shopping spree in November, when total revolving credit exploded higher by a massive $11 billion, the highest November increase on record, and the second highest of the post-crash period. The credit card spending spike may explain why November, i.e., early holiday sales, were strong only to tumble in the second half of the holiday spending season as various retailers have already complained.

JPY

  • Leading Indicators
  • Bank Lending y/y
  • Current Account

USD

  • Crude Oil Inventories
  • President-Elect Trump Speaks
  • 10-y Bond Auction
  • FOMC Member Dudley Speaks

Technical Overview

Technically, USDJPY seems to reverse, as the pair lost more than 107 pips from the opening price of 117.005, whereas, the high to low movement remained 170 pips for the day. The pair is holding below a strong resistance level of 116.25, whereas the break above this level, can lead the pair towards next target level of 117.250, while currently, the pair is targeting 115.35. RSI value is slightly bullish as it just crossed over 50, currently at 54 with a shift from 37. The support prevails at 115.350 and 114.750. Moreover, the resistances are found around 117.250 and 118.150.

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