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GBP/JPY binary signal - UK Retail Sales - 19 Jan 2018

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Expiry Time: 
21:00 GMT
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The UK's Office for National Statistics (ONS) will be releasing the monthly retail sales report today at 0930 GMT. According to the economists polled, the retail sales in the UK is forecast to decline 0.8% in the month of December. This comes following November's retail sales report which showed a 1.1% increase.

The decline in the retail sales is forecast despite the optimisic picture painted by the industrial output figures for the month of November. Industrial output surged on the back of a weaker exchange rate in the British pound and mostly on account of global demand rising.

The November retail sales report surprised the markets as it showed a strong increase. The ONS said that retail sales had remained strong with growth strongly entrenched. Most of the gains came from the Black Friday sales with household appliances making the biggest contribution to retail sales back then.

Despite the rather dovish forecast, the holiday season sales could see actual retail sales data coming out better than expected. However, at the same time the rise in inflation has put a squeeze on household spending. This could be seen dampening the retail sales report for December.

Based on the above, today's binary signal is GBPJPY. The currency pair has been steadily rising as it touched a fresh two year high yesterday on an intraday basis.

Price action from yesterday suggests an upside breakout on the triangle pattern that was formed on the daily chart. On an intraday basis, we expect that the declines could be limited although there is scope for a correction in this currency pair.

Therefore, we are looking to purchase daily Put options at 154.26 for a 21:00 GMT expiry time. We expect that GBPJPY will consolidate at this level before closing lower on the day.

binary options signal gbpjpy 19 Jan 2018

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.