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USD/JPY binary signal - ISM Non-manufacturing PMI - 03 May 2018

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Signal details
Entry Price: 
109.76
Close Price: 
109.18
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The Institute of Supply Management (ISM) will be releasing the monthly non-manufacturing PMI for the month of April today at 12:30 GMT. According to the economists polled, non-manufacturing PMI is expected to slip modestly to 58.1 during the month. This marks a slower pace of activity compared to 58.8 that was seen in March.

Non-manufacturing activity, which covers mostly the services sector has been an important contributor to the U.S. GDP data. The index was seen steadily rising to 59.9 just a few months ago marking the highest reading on the index in recent times.

However, non-manufacturing activity was seen slowing ever since. This was consistent with the first quarter GDP data which showed a slower pace of increase in the economic activity in the U.S. Despite the declines off the historic highs, non-manufacturing PMI continues to remains robust.

Most notable, the PMI data for March showed that businesses were already feeling the pressure of higher input costs. This is expected to be passed down to consumers and could impact the consumer prices in the coming months.

Other sub-components also showed that employment index continued to remain strong during the month. There is potential that the ISM's non-manufacturing PMI could surprise to the upside. Previously, the ISM's manufacturing PMI was seen slipping slightly.

Based on the above today's binary trading signal is USDJPY. The currency pair formed a doji on Wednesday and price action is likely to post a correction in the near term. Therefore it is ideal to purchase daily PUT options at 109.76 for a 21:00 GMT expiry time.

We expect a modest retracement in USDJPY before price action is likely to close lower on the day.

binary options signal 03 may 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. 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.