Market Research and Analysis

Daily Market Analysis Report

Tue, 02 May 2017 05:02 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 112.75 – 108.450
  • Support & Resistance Levels:
  • R3: 113.22
    R2: 112.40
    R1: 111.72
    Pivot Point: 110.90
    S1: 110.22
    S2: 109.40
    S3: 108.72
  • Trading Recommendation:
  • Still Active
  • Buy Above 111.650
    Take Profit
    1st @ 112.250
    Stop Loss @ 111.350

USDJPY

USD/JPY is trading at 112.11, up +0.24% on the day, having posted a daily high at 112.175 and low at 111.770. The US dollar list (DXY) which measures the greenback’s quality against a crate of six noteworthy monetary standards, was lifted after US Congressional arbitrators achieved an arrangement late Sunday on a spending bundle to keep the US government subsidized through September 30th, consequently staying away from an administration shutdown.

2 May JPY
Fundamental Overview

Overnight, it was accounted for that Japanese manufacturing PMI for April came in at 52.7, down marginally from the preparatory estimate at 52.8, which depended on 85-90% of aggregate review reactions. PMI over 50 signals extension and April denoted the eighth continuous month Japan’s assembling PMI was over 50.

JPY

  • Monetary Base y/y
  • Monetary Policy Meeting Minutes
  • BOJ Core CPI y/y

USD

  • Total Vehicle Sales

Technical Overview

Today, the USDJPY is heading upword with the nearest support at 111.850 level. The drop below this level, the next area to watch is at the bottom of the gap created at the start of last week’s trading, which comes in at 109.42. Over the near-term, a period of consolidation appears likely, given the approach of resistance at 112.00 and the persistent overbought reading on the Stochastic, a price momentum indicator. In addition, a move above the 112.00 level is required to improve the intermediate-term outlook. A break above this level would suggest a return to 115.50 is possible.

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