Market Research and Analysis

Daily Market Analysis Report

Thu, 05 Jan 2017 05:08 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 116

    Take Profit

    1st @ 116.70

    Stop Loss @ 115.70


USDJPY is trading at 116.68, down -0.58% on the day, having posted a daily high at 117.45 and low at 116.58. The pair has gotten ugly as the yen pounds fell down the nail in the box for the greenback with a break beneath the 117 handle and testing the bull’s responsibilities at the mid purpose of the 116 handle with hazard to 116.02 on a continuation ought to stops give out underneath current spot. The topic has been bettered offered for the US dollar overnight with starting benefit taking and the DXY dropping once more from 14 year highs while the FOMC minutes uncovered preventative dialect in regard to the Feds speck plot and reestablished hawkishness, notwithstanding being a hawkish arrangement of minutes. Investors are focusing on the NFP and the Unemployment Rate due on Friday.

Fundamental Overview

Fundamentally, the operating conditions improve at sharpest rate since December 2015. Production and new orders both expand at quickest rates seen over 2016. Cost inflationary pressures accelerate to 17 – month peak Data collected December 6 – 15 The Japanese manufacturing sector ended 2016 on a positive note. Overall operating conditions improved at the sharpest rate since December 2015, helped by stronger growth in both production and new orders. As a result, goods producers were more confident towards taking on additional workers.


  • Monetary Base y/y
  • 10-y Bond Auction


  • ADP Non-Farm Employment Change
  • Unemployment Claims
  • Final Services PMI
  • ISM Non-Manufacturing PMI

Technical Overview

Technically, the USDJPY fell 119 pips has the JPY strengthened on better than expected manufacturing figures. Currently, the pair is maintaining a bearish momentum while trading at 116.45. Moreover, the pair is holding below a strong resistance level of 116.85, whereas the break above this level, can lead the pair towards next target level of 117.40, while currently the pair is targeting 116.10. RSI value is slightly bearish at 37 with a shift from 50. The support prevails at 116.10 and 115.550. Moreover, the resistances are found around 116.850 and 117.450.

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