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USD/JPY binary signal - FOMC Member Brainard speech - 11 Jul 2017

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Expiry Time: 
20:00 GMT
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Lael Brainard, one of the governors on the Federal Reserve's FOMC board will be speaking today at 1600 GMT. Her speech is scheduled at the Columbia University's School of International and Public Affairs.

Ms. Brainard is considered to be one of the hawks, on the FOMC board and therefore, her comments could be hawkish that could support the U.S. dollar. Brainard's speech comes at a crucial time as the Fed's Chair, Janet Yellen will be giving her semi-annual testimony to the U.S. Congress later in the week.

Although the prepared remarks were already released, there is still scope for unprepared comments especially when the law makers will likely question Ms. Yellen on monetary policy. This could bring some level of uncertainty for the markets, keeping the U.S. dollar volatile.

Going back to Ms. Brainard's comments, in one of her previous speeches, the policy maker was quoted as saying that inflation was a concern. This was a dovish remark from Ms. Brainard who has consistently been aggressive in tightening monetary policy.

Inflation in the United States continued to weaken after reaching the 2% inflation target rate earlier this year. Since then, inflation has remained weak, with the latest June inflation data due for release later this week.

The Fed has also projected that inflation could remain below the 2% target in the near term and called it a temporary blip.

Based on the above, today's binary options signal recommendation is for USDJPY. The currency pair has been in a steady uptrend. Watch for price action to retrace back to 114.35, following which PUT options are recommended for 20:00 GMT expiry time.

The reversal near the identified resistance level will signal that price action could likely post a correction in the near term. Support is seen at 113.36, which could be tested in the near term ahead of further gains thereafter. Therefore, PUT options are ideal at 114.35 as we expect to see USDJPY close lower for the day.

binary options signal eurusd 11 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. 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.