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EUR/JPY binary signal - Japan unemployment rate - 28 Aug 2017

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20:00 GMT
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Japan will be releasing the monthly unemployment rate today at 23:30 GMT. The unemployment rate is forecast at 2.8%, unchanged from the previous month. The household spending data is also expected to be released with the median forecast pointing to a 0.8% increase.

This is slightly lower than the 2.3% increase that was seen last month. Household spending will be an important metric alongside the unemployment report. Combined, both the data points would likely show how well the Japan's labor market has been performing.

The data will also show on the potential effects on inflation. Last week, inflation data showed that the national core CPI rose 0.5% on a year over year basis. This was slightly higher than the previous month which registered a 0.4% increase and was in line with the median estimates.

The Tokyo core CPI which is a stronger measure of inflation was also seen rising 0.4%, beating estimates of 0.3% and up from 0.2% previously. The gains in inflation were seen broadly on account of increased household spending. Therefore, today's unemployment rate and the household spending data will likely signal the potential change to upcoming inflation reports.

The Bank of Japan has pushed back its expectations on forecast. The central bank expects Japan's inflation to rise to 2% around March or April next year. Still, with inflation staying stubbornly low, the BoJ's forecast was met with some doubts.

Based on the above, today's binary trading recommendation is EURJPY. The currency pair has been trending strongly. Most of the gains came on the back of a stronger euro and the hawkish expectations from ECB President Mario Draghi.

The EURJPY has managed to touch 130.00 level but we expect to see some correction in the near term. Therefore, we are looking to purchase daily CALL options at 130.00 as we expect EURJPY will be pulling back to close higher on the day.

binary options signal eurjpy 28 Aug 2017

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.