FX.co ★ Technical analysis of USD/JPY for January 08, 2016

Market Overview:

As the oil reserves in the USA increased reaching the highest level during the last 22 years (63.9 million barrels), the oil price around the world is experiencing a decline to $40 / barrel (actually reaching $34 / barrel). Due to the excess supply and the uncertainties in geo-politics, oil prices become depressed so that's why in the short term the economy in Japan is much affected by the oil price movements. So the Japanese Yen in the short term is undergoing strengthening, but the trend's weakening in the world economy, led by China of course, also will hold the Yen's rise in the future. Although the Chinese government to intervene through their central bank, the market participants see its actions more than a signal that the country is in the middle of the confusion facing the departure of foreign fund flows. So the market participants see there is a possiblity of economic slowdown in China. This also restrains the strengthening of the Yen in the short term. But what must be considered is the release of the US Non-Farm Payrolls and US Unemployment Rate today which is very volatile and potentially change the direction in the market, especially for the USD/JPY.

Today's Economic Data's:

During the Asian session, Japan will release Leading Indicators, Average Cash Earnings y/y and the US will publish Consumer Credit m/m, Wholesale Inventories m/m, Unemployment Rate, Non-Farm Employment Change, Average Hourly Earnings m/m, amid this data the USD/JPY today have a probability moving in medium to high volatility.

Today's Technical Data:

Weekly Bias is: Ranging.

Daily Bias is: Ranging.

Today's Technical Level:

Resistance. 3: 118.64.

Resistance. 2: 118.41.

Resistance. 1: 118.18.

Support. 1: 117.89.

Support. 2: 117.66.

Support. 3: 117.43.

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