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EUR/JPY Signal - Japan Retail Sales - 29 Mar 2017

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Signal details
Entry Price: 
Close Price: 
No trade
Expiry Time: 
20:00 GMT
How we trade
5/5 of 3 ratings

Retail sales in Japan inched higher in February, rising 0.1% on a month over month basis in what is seen as evidence of a tepid recovery in consumer spending in the nation. The February's increase of 0.1% comes following a rise of 1% in retail sales the month before, data from the Japan's Ministry of Economy, Trade and Industry showed earlier today on Wednesday. The headline print for February was however lower than the forecasts of a 0.7% increase.

As of February, retail sales in Japan have risen in each of the past fourth months and the recovery in retail sales comes nearly eight months of declines. On a seasonally adjusted basis, receipts rose 0.2% compared to the month before. Despite the increase however, data showed that sales at large retailers fell 2.7% in February. This follows January's decline of 1.1%.

The single currency on its part was seen trading weaker yesterday as the U.S. dollar showed a broad based rally led by better than expected economic data as well as being supported by hawkish comments from the Fed's vice-chairman, Stanley Fischer.

The EURJPY currency pair comes under focus today and the currency pair could be seen coming under pressure. The British government is expected to formally trigger the Article 50 of the Brexit talks today which would lay out the timeline of two years for the UK and the EU to discuss the exit terms. As a result, the common currency could be seen coming under pressure, but we could expect to see the EURJPY remain muted to the event on the whole, considering the fact that the Brexit deal has been well documented. Furthermore, the EU response is expected to come a week or two later.

Therefore, for today's binary options trading signal, we recommend to purchase daily CALL options in EURJPY above 120.30. The break out above this level will see an intraday or a short term rally towards 121.185 - 121.20 where a strong resistance level sits and this level is pending a retest.

Besides the Brexit announcement, the economic calendar is relatively quiet with no other major events lined up that could influence the risk appetite. Thus, look to purchase daily CALL options around 120.30 for a 20:00 GMT expiry time in EURJPY.

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.