Market Research and Analysis

Daily Market Analysis Report

Wed, 18 Jan 2017 04:02 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 116.10 – 112.550
  • Support & Resistance Levels:
  • R3: 114.84
    R2: 114.2
    R1: 113.8
    Pivot Point: 113.16
    S1: 112.52
    S2: 112.12
    S3: 111.48
  • Trading Recommendation:
  • Sell Below 113.250
    Take Profit
    1st @ 112.450
    Stop Loss @ 113.450

USDJPY

USDJPY fell more than 170 pips to trade bearish at 113.06, violating a well maintained a narrow trading range of 115.350 – 114. USDJPY pair tumbled to a new multi-month low of 112.58, as American dollar suffered its worst drop since July after the US President-Elect Donald Trump expressed concerned regarding the strength in the US Dollar. Stocks fell in Asia and Europe, despite the fact that with the US on vacations, Yen’s request directed in the US session, helping the combine to hold over the 114.00 figure, yet not by much. Amid the forthcoming Asian session, Japan will discharge its most recent Industrial Production information, in spite of the fact that there are great possibilities that the market will stay in sit back and watch mode in front of up and coming May’s discourse.

18 Jan JPY
Fundamental Overview

Business activity continued to grow modestly in New York State, according to firms responding to the January 2017 Empire State Manufacturing Survey. The headline general business conditions index was little changed at 6.5. The new orders index fell to 3.1, pointing to a small increase in orders, and the shipments index held steady at 7.3. Inventories edged higher for the first time in more than a year. Labor market conditions remained weak, though less so than in recent months, with manufacturers reporting a slight decline in employment and somewhat shorter workweeks.

JPY

  • WEF Annual Meetings

USD

  • CPI m/m
  • Core CPI m/m
  • Capacity Utilization Rate
  • Industrial Production m/m
  • NAHB Housing Market Index
  • FOMC Member Kashkari Speaks
  • Beige Book
  • Fed Chair Yellen Speaks
  • TIC Long-Term Purchases

Technical Overview

On Wednesday, the USDJPY is trading below 113.20, the 50 EMA a strong resistance level in H4 timeframe. The pair broke below a double bottom level of 113.850 and while writing this report it is below this strong support come resistance level of 113.75, whereas the break above 113.850 level, can lead the pair towards next target level of 114.750. RSI value is bearish, currently at 37 with an upward shift from 30. The support prevails at 112.850 and 112.350. Moreover, the resistances are found around 113.250 and 113.750.

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