Market Research and Analysis

Daily Market Analysis Report

Thu, 12 Jan 2017 03:50 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:
  • Sell Below 115.010
    Take Profit
    1st @ 114.350
    Stop Loss @ 115.30

USDJPY

USDJPY plunged 270 to trade lower at 114.800 on the day, having posted a daily high at 116.860 and low at 114.234. USDJPY pair rallied to 117.53 at the beginning of the day, but changed course mid European morning with the Japanese yen accelerating its advance in the US session, tracking the poor performance of American stocks and yields. Investors focus will remain on U.S unemployment claims figures releasing today on Thursday.

12 Jan JPY
Fundamental Overview

Donald Trump held his first press conference since winning the presidency on Wednesday, touching on many of the issues that will dominate the opening weeks of his presidency. Looming over the proceedings was a newly-published, and entirely unverified, dossier claiming the Russian government had collected compromising information on him. Mr. Trump blasted the intelligence community and media for allowing the documents to become public, before moving on to his business dealings and his priorities upon taking office. Mr. Trump says it is a “disgrace” that information that should have been restricted to the intelligence community made its way into media reports.

JPY

  • Economy Watchers Sentiment
  • M2 Money Stock y/y

USD

  • President-Elect Trump Speaks
  • FOMC Member Dudley Speaks

Technical Overview

As suggested in the previous reports, the USDJPY seems to reverse, as the pair lost more than 56 pips from the opening price of 115.74, whereas, the high to low movement remained 280 pips for the day. The pair broke below a double bottom level of 115.250 and at the of writing this report it is holding below this strong support come resistance level of 115.25, whereas the break above this level, can lead the pair towards next target level of 115.750, while currently, the pair is targeting 113.85. RSI value is bearish, currently at 30 with a downward shift from 46. The support prevails at 113.850 and 113.350. Moreover, the resistances are found around 115.250 and 115.750.

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