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USD/JPY binary signal - FOMC Meeting - 20 Sep 2017

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Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The big event scheduled for today will be the FOMC monetary policy meeting. The FOMC will be concluding its two day monetary policy meeting and will release a statement at 1800 GMT today. Following the monetary policy meeting, the FOMC will be holding a press conference later.

No changes to interest rates are expected at today's monetary policy meeting. The U.S. short term interest rates are expected to remain at 1.25%. However, the central bank is expected to announce the balance sheet normalization today. The market reaction to this announcement could be crucial as the U.S. dollar could react either way.

The Fed is also expected to announce its forward guidance on interest rates. With an uptick in inflation in August, the Fed could potentially announce its intentions to hike interest rates later in the year. However, there is scope for the Fed to come out dovish and wait for more time to assess the impact on inflationary pressures.

The U.S. dollar will no doubt come under pressure as a result following today's FOMC meeting. The Fed will also be giving its quarterly forecasts at today's meeting and markets will be looking at the GDP and inflation figures over the next three months.

Overall, today's FOMC meeting will likely set the stage for the Fed's next monetary policy move over the next three month period in the fourth quarter. The basis of this could potentially determine the outcome of the next interest rate hike from the Fed.

Based on the above, today's binary options signal is USDJPY. The currency pair has managed to post strong gains over the past few days. However, this strong rally is likely to post a correction in the near term. And this reaction could potentially come on the back of the market reaction to the FOMC meeting.

We are looking to purchase daily PUT options at 111.35 for a 20:00 GMT expiry time. We expect USDJPY to break down below this minor support and close lower on the day.

binary options signal usdjpy 20 Sep 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. 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.