Market Research and Analysis

Daily Market Analysis Report

Wed, 04 Jan 2017 08:55 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 119.10 – 115.550
  • Support & Resistance Levels:
  • R3: 119.06
  • R2: 118.41
  • R1: 118.01
  • Pivot Point: 117.36
  • S1: 116.71
  • S2: 116.31
  • S3: 115.66
  • Trading Recommendation:
  • Buy above: 118.35
  • Take Profit
  • 1st @ 118.70
  • Stop Loss @ 118.00


USDJPY soared to trade at 117.97 on Tuesday, as the U.S Dollar strengthened on better than expected economic figures. Especially, the ISM Manufacturing PMI came 2 years high at 56.1, demonstrating stronger economy comparing to the precious figure of 53.6. Further, the USDJPY is continuing bullish momentum for the 4th consecutive day. The overall fluctuation remained 129 pips along with a high of 118.607 and a low of 117.723. Investors are focusing on the NFP and the Unemployment Rate due on Friday.

Fundamental Overview

Fundamentally, the American manufacturing expanded in December at the fastest pace in two years, reflecting firmer output and the biggest pickup in orders growth since August 2009. The Institute for Supply Management said Tuesday that its index increased to 54.7, the fourth straight advance, from 53.2 a month earlier. The median forecast in a Bloomberg survey called for 53.8. Readings above 50 indicate growth. The ISM’s measure of orders surged 7.2 points, while its gauge of prices paid for materials climbed to the highest level since June 2011. The ISM’s index of prices paid climbed to 65.5 from a November reading of 54.5. The group’s gauge of new orders increased to 60.2 last month after 53 in November. The measure of orders for overseas customers rose to 56 in December from 52.


  • Final Manufacturing PMI


  • Total Vehicle Sales

Technical Overview

Technically, the USDJPY soared for 129 pips to hit the suggested profit level at 117.65, currently, the pair is maintaining a bullish momentum while trading at 117.970. Moreover, the pair is holding below a strong double top resistance level of 118.300, whereas the  break above this level, can lead the pair towards next target level of 118.70. RSI value is slightly bullish at 68 with a shift from 60. The support prevails at 117.600 and 117.250. Moreover, the resistances are found around 118.300 and 118.700.