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USD/JPY binary signal - ADP payrolls and ISM PMI - 01 Nov 2017

Signal details
Entry Price: 
113.82
Close Price: 
114.17
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 6 ratings

The start of a new trading month brings with a lot of economic data from the United States. The main events for today will include the ADP/Moody's private payrolls data followed by th Institute of Supply Management (ISM) manufacturing PMI. The economic data continues followed by the FOMC meeting later in the day.

According to the economists polled, private payroll hiring in the U.S. is expected to show 191k jobs being added for October. This comes after ADP private payroll data showed an increase of 135k jobs in September. However, the September numbers are likely to be revised lower following the weaker than expected NFP payrolls for the same period.

Later in the day, the ISM's manufacturing PMI which is a gauge of manufacturing activity in the U.S. is forecast to slip to 59.4 in October. This is a moderation in the index following September's increase to 60.8 which marked a near term highest reading in the index.

Other economic data over the day includes the construction spending data followed by the FOMC statement that is due at 18:00 GMT. No changes are expected to the U.S. short term interest rates. The Fed had previously signaled that it will hike interest rates in December. Thus the markets will be looking for any clues from the central bank officials in terms of the forward guidance. There will be no press conference held as well which will keep the markets slightly muted.

Overall, the combination of various economic reports along with the FOMC meeting will see some volatility picking up in the U.S. dollar, and we are looking to trade USDJPY.

The USDJPY currency pair was bullish yesterday and USDJPY could be seen maintaining the gains. Therefore, we would purchase daily CALL options at 113.82 for a 21:00 GMT expiry time. We expect to see USDJPY making a short term pull back before attempting to close higher on the day.

binary options signal usdjpy 01 Nov 2017

Comments

Toni H.'s picture

The USDJPY triggered the entry price level as it dipped briefly on an intraday basis to 113.82 where we were looking to purchase daily CALL options. USDJPY closed higher on the day at 114.17 thus closing in the money. The gains came as the U.S. economic data was broadly in line with estimates. ADP private payrolls improved and the ISM manufacturing PMI was seen to somewhat weaker but expected. The FOMC meeting also saw the central bank officials still projecting one more rate hike by the end of the year.

Toni H.

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.