Market Research and Analysis

Daily Market Analysis Report

Tue, 03 Jan 2017 04:49 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 117.10 – 114.550
  • Support & Resistance Levels:
  • R3:     119.06R2:     118.41

    R1:     118.01

    Pivot Point:     117.36

    S1:     116.71

    S2:     116.31

    S3:     115.66

  • Trading Recommendation:
  • Buy Above 117.10

    Take Profit

    1st @ 117.65

    Stop Loss @ 116.90

USDJPY

USDJPY printed a crisp daily high at 117.49 amid the American session. The US dollar is bullish, no matter how you look at it on the first trading day of 2017. Whereas, the instability stays low. The pair is solidifying over 117.30, on its way to a daily pick up of around 40 pips. The pair has facilitated a week ago misfortunes. In this way, the upside stays constrained by 117.50. A break higher could make room for a trial of 117.80.

3-jan-jpy
Fundamental Overview

Fundamentally, the Resurgence of USD buying is largely on the back of investors creating fresh long positions heading into the first day of 2017, and now awaiting fresh batch of significant US macro releases due on the cards later this week, with the highly influential payrolls data on tap this Friday. The Bank of Japan’s latest Summary of Opinions was a moderately upbeat affair The Yen duly made some hay, taking USD/JPY below the 117 handle However, big question marks still loom over consumer confidence and, crucially, inflation. The Japanese Yen strengthened against the US Dollar on Thursday after the release of a moderately upbeat Summary of Opinions from the Bank of Japan, with USDJPY sliding under 117.00. Japan’s economy is on a “moderate recovery” path, helped by stronger exports and industrial production, according to the BOJ.

Today on Tuesday, the investors are recommended to monitor the following events:

JPY

  • Final Manufacturing PMI

USD

  • ISM Manufacturing PMI

Technical Overview

Technically, the USDJPY soared for 105 pips to hit the suggested profit level at 117.15, currently the pair is maintaining a bullish momentum while trading at 116.800. Moreover, the pair is holding below a strong double top resistance level of 117.750, whereas the break above this level, can lead the pair towards next target level of 118.20. RSI value is slightly bullish at 55 with a shift from 52. The support prevails at 117.100 and 116.65. Moreover, the resistances are found around 117.750 and 118.200.

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