Market Research and Analysis

Daily Market Analysis Report

Fri, 06 Jan 2017 04:59 AM GMT

Author: Senior Forex Analyst, Arslan Ali Butt

  • Daily Trading Range:
  • 119.10 – 115.550
  • Support & Resistance Levels:
  • R3:     118.2

    R2:     117.36

    R1:     116.83

    Pivot Point:     115.99

    S1:     115.15

    S2:     114.62

    S3:     113.78

  • Trading Recommendation:
  • Sell Below 116.25

    Take Profit

    1st @ 115.30

    Stop Loss @ 116.45


USDJPY is trading at 115.55, down -0.01% on the day, having posted a daily high at 115.66 and low at 115.07. The pair dove to 115.21, it’s most minimal level since mid of December, holding adjacent in front of Friday’s opening. The pair dove once it broke underneath 117.00 after the arrival of US FED’s Minutes, quickening further lower after US labor information figures discharged this Thursday frustrated. The ADP review demonstrated that the private part included only 153,000 new occupations in December, well underneath the 170K expected of past 251K. December is a month when occupation’s creation has a tendency to be better than expected, because of regular contracting, and this poor ADP some way or another foresees a poor NFP report for Friday.

Fundamental Overview

Fundamentally, U.S. unemployment benefits declined to the lowest level in eight weeks, showing volatility typical around the holiday period. Jobless claims dropped by 28,000 to 235,000 in the week ended Dec. 31, a Labor Department report showed Thursday in Washington. The median projection of economists surveyed by Bloomberg called for 260,000. While the figures usually show swings around the year-end holidays, firms have generally avoided firings as the job market tightens and the supply of available workers shrinks. Employers probably continued to add staffers at a solid pace last month, analysts estimated ahead of data due Friday.


  • Average Cash Earnings y/y


  • Average Hourly Earnings m/m
  • Non-Farm Employment Change
  • Unemployment Rate
  • Trade Balance
  • Factory Orders m/m
  • FOMC Member Evans Speaks

Technical Overview

Technically, the USDJPY fell another 230 pips, as the USD weakened on worse than expected ADP- nonfarm payroll 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 116.25, whereas the break above this level, can lead the pair towards next target level of 116.80, while currently the pair is targeting 116.10. RSI value is slightly bearish at 37 with a shift from 50. The support prevails at 115.75 and 115.250. Moreover, the resistances are found around 116.250 and 116.850.

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