Daily Market Insights

 
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16/5/2017
USD/JPY

Greenback bouncing of major support against Yen

As a further indication of growing strength in he housing market, builder confidence in the market for new homes rose two points in May on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).

MI measure of future sales conditions reached its highest level in recent years, showing greater important consumer confidence in the new home market.

Empire State Manufacturing Survey fell down by six points which can be seen as a decline in orders and shipment, suggesting that shipments are moving at a slower rate during April.

Indexes assessing outlook suggested that firms remained optimistic about future conditions which also held steady at 39.3, and indexes for future new orders and shipments are looking higher then the current levels, Employment are bound to increase in coming months.

Employment indexes remains positive, indicating good improvement in labor market conditions.

The Japanese Prime Minister Abe and the announcement of aggressive QE was a political drive, keeping in mind the Japan's growth and inflation and looks to altered, Japan April Producer Price Index (PPI) rose 2.1% year-on-year; its fastest rate in recent times and came well above the estimate of 1.8%.

Intraday bias in USD/JPY is trading above 113.326 level which gets a good support base, and the recent bounce of the 50EMA reinforces the expectations of continuing the bullish bias in the upcoming period. The way is open for the pair to head towards the recently recorded top on the near term basis. The price provided new positive close above the level, to confirm its affection by the domination of the bullish bias in the near and medium period.

We keep waiting for the pair to achieve the target at 114.258. The price gets its positive with stochastic stability above 50.0 level to confirm its attempt to reach the previously suggested target. The pair trading on rebound found support at the latest trend line, hence we’d be expecting resumption of a larger up-trend from current levels resistance turned support levels.

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