07 January 2022 Afternoon Session Analysis
Japanese Yen dipped amid bearish economic prospect.
The overall economic prospect for the Japan region remained bearish following the economic data had indicated that the Japan’s real wages fell significantly in November for third month as inflation outstripped stagnant nominal wages. The lower wages rate had diminished the household’s purchasing power in Japan. According to Statistics Bureau, Japan Household Spending dipped significantly from the previous reading of -0.6% to -1.3%, missing the market forecast at 1.6% while jeopardizing the economic momentum in the Japan region. Nonetheless, Japanese Prime Minister Fumio Kishida has urged Japanese firms, whose profits have recovered to pre-pandemic levels to increase wages rate by 3% or more, aiming to achieve a cycle of growth and wealth distribution. Market participants speculated that the raising wages expectation would create higher inflation risk in future, dragging down the appeal for the Japanese Yen. As of writing, USD/JPY appreciated by 0.05% to 115.90.
In the commodities market, the crude oil price appreciated by 0.45% to $80.35 per barrel as of writing. The oil market surged amid supply constrain for this black-commodity following data had shown that the production in Libya fell to 729,000 barrels per day, lesser than the previous reading of 1.3 million bpd last year amid pipeline maintenance work. On the other hand, the gold price was traded flat at $1793.00 per troy ounces amid market participants are waiting for the crucial NFP data from the US region tonight.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Construction PMI (Dec) | 55.5 | 54 | – |
| 18:00 | EUR – CPI (YoY) (Dec) | 4.90% | 4.70% | – |
| 21:30 | USD – Nonfarm Payrolls (Dec) | 210K | 400K | – |
| 21:30 | USD – Unemployment Rate (Dec) | 4.20% | 4.10% | – |
| 21:30 | CAD – Employment Change (Dec) | 153.7K | 27.5K | – |
| 23:00 | CAD – Ivey PMI (Dec) | 61.2 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 95.65. However, MACD which illustrated diminishing bullish momentum suggest the index be traded lower in short-term as technical correction.
Resistance level: 96.90, 97.50
Support level: 95.65, 94.90
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3565. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3565, 1.3615
Support level: 1.3445, 1.3350
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1345. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1345, 1.1440
Support level: 1.1235, 1.1175
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 116.25. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 116.25, 117.50
Support level: 115.05, 114.25
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.7165. MACD which illustrated bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.7265, 0.7365
Support level: 0.7165, 0.6995
NZDUSD, Daily: NZDUSD was traded lower following prior retracement from the resistance level at 0.6815. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6710.
Resistance level: 0.6815, 0.6920
Support level: 0.6710, 0.6570
USDCAD, Daily: USDCAD was traded lower following prior retracement from the resistance level at 1.2825. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.2625.
Resistance level: 1.2825, 1.2940
Support level: 1.2625, 1.2520
USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9175. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9260.
Resistance level: 0.9260, 0.9345
Support level: 0.9175, 0.9105
CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level at 80.55. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 80.55, 84.35
Support level: 76.85, 72.50
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1786.30. However, MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1809.95.
Resistance level: 1809.95, 1830.55
Support level: 1762.20, 1786.30