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USD/JPY binary signal - BoJ Core CPI - 04 Jul 2017

Signal details
Entry Price: 
113.15
Close Price: 
113.26
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
OTM
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The Bank of Japan will be releasing its monthly statistics on the core consumer price index (CPI) today at 0500 GMT. According to economists polled, core CPI is expected to rise 0.3% on the month, following a 0.2% increase previously. Despite the minor increase in inflation, Japan's consumer prices are still far away from the BoJ's 2% inflation target rate.

The data is unlikely to make a dent in the USDJPY much with the main focus being the central bank themes and traders waiting for more clarity from the Federal Reserve. In the last week, the ECB president, Mario Draghi and the BoE Governor Mark Carney came out strongly hawkish, expecting that monetary policy will be tightened.

Meanwhile, the Federal Reserve and the FOMC officials have stayed mum on the topic of forward guidance for monetary policy. FOMC officials have expressed concerns for the downside risks of inflation which seems to be slipping away following the brief increase in consumer prices to the 2% inflation target rate.

Therefore, USDJPY will be most likely looking to clues from the broad market theme compared to just the BoJ's core CPI data. However, a continued deterioration of consumer prices could keep the Japanese yen biased to the downside against the U.S. dollar.

Later in the week, high impact events include the FOMC meeting minutes coming out on Wednesday followed by the Friday's U.S. nonfarm payrolls report. Therefore, with the key releases coming up, USDJPY looks to be well settled to the upside.

Based on the factors the recommendation for today's binary options signals is USDJPY. With the support level above 112.00 being comfortably cleared, we can expect USDJPY to post a short term consolidation.

Therefore, we would look to purchase USDJPY PUT options at 113.15 for a 20:00 GMT expiry time. We expect to see USDJPY to give up some of the strong gains posted yesterday and as a result the currency pair could be seen closing lower on the day.

binary options signals USDJPY 04 Jul 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. 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.