Market Research and Analysis

Daily Market Analysis Report

Tue, 06 Jun 2017 08:35 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 112.25 – 107.250
  • Support & Resistance Levels:
  • R3: 116.47
    R2: 114.12
    R1: 112.81
    Pivot Point: 110.46
    S1: 109.15
    S2: 106.8
    S3: 105.49
  • Trading Recommendation:
  • Buy Above 109.400
    Take Profit
    1st @ 109.950
    Stop Loss @ 119.200


USD/JPY is fell dramatically lower in today’s trading, holding near 109.63 down -0.84 and -0.76% in the European session. The pair dropped nearly 85 pips since it begun trading today. Today’s price action produced a test of key support at May 18th’s 110.24 low. And, with a minor positive divergence in place between price action and the Stochastic, a price momentum indicator, the pair has the potential to maintain a sideways to upside bias over the near term.

6 June JPY
Fundamental Overview

Japan’s real wages were flat in April from the same period a year earlier, with rising prices offsetting gains in nominal pay and possibly hurting households’ purchasing power. Real wages, which are adjusted for moves in consumer prices, were flat in April from a year earlier, labour ministry data showed on Tuesday. It followed a revised 0.3 percent annual fall in March. Wage earners’ nominal cash earnings rose an annual 0.5 percent in April, the biggest rise in four months. Revised data showed that nominal wages were flat from a year earlier in March.


  • Average Cash Earnings y/y
  • 30-y Bond Auction


  • JOLTS Job Openings
  • IBD/TIPP Economic Optimism

Technical Overview

USDJPY was trading around 109.63 and a  break below 109.93 could yield a sell-off to 109.59 and 109.0. On the flip side, a resistance is seen at 110.23, which, if breached would expose 110.78  and 111.00. The daily RSI is below 50.00 and sloping downwards.

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