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EUR/JPY binary signal - Eurozone Flash PMI - 21 April 2017

Signal details
Entry Price: 
117.10
Close Price: 
116.76
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
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A rather busy day of the week as the markets look to the flash manufacturing and services purchase managers' index surveys due today for the month of April. Overall, no major changes are expected as the Eurozone manufacturing PMI is expected to slip 0.1 points and the services PMI expected to remain steady at 56.0 same as the month before.

However, the main focus of the day will be this Sunday's French elections where the first round will be held. The top five candidates for the post of the French presidency will face off against each other with only two candidates making it to the next round. French opinion polls are struggling to call a winner with the anti-EU candidate, Marine Le Pen projected to win the first round with a comfortable margin.

However, a lot is left unsaid and anything can happen. The euro currency which surged yesterday practically gave up all its gains overnight and is likely to remain bearish heading into a high impact event over the weekend. Therefore, there is a strong chance that we can expect to see a bearish momentum engulf the euro in the coming days.

The uncertainty is expected to create ripples in the market and with the lack of any clear market moving event; the French elections will be the center of attention for traders. As a result investors are bound to bid up the Japanese yen which is known for its safe haven status. This could potentially signal a bearish outlook in EURJPY, which is seen giving up the gains made from yesterday's intraday rally.

Considering the above, today's binary options signal recommendation is to purchase PUT options in EURJPY. This currency pair is the choice as we expect the Japanese yen to strengthen in the near term against a considerably weaker Euro on the back of these events.

As a result, look to purchase daily PUT options in EURJPY at 117.10 for a 20:00 GMT expiry time as we expect the currency pair to post a modest rebound on the upside, but the resistance level here could be seen to be strong enough to hold the gains.

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. He has no business nor personal relationships with any mentioned government entities or stocks. 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.