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USD/JPY binary signal - Philly Fed Manufacturing Index - 17 May 2018

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Signal details
Entry Price: 
110.50
Close Price: 
110.75
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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The economic calendar today turns quiet again amid what has been a slow trading week. The economic data for today will briefly feature the monthly Philly Fed manufacturing index report.

This leading indicator gives insight into the manufacturing activity at the regional level and is likely to give an estimate on how manufacturing activity performed in the month of May. According to the economists polled, manufacturing activity is expected to briefly slip to 21.1 on the month in May.

This comes after the Philly Fed manufacturing index rose to 23.2 in April. Manufacturing activity has been easing back after touching highs of 26.2 some five months ago. Overall, the manufacturing activity in the United States has remained somewhat subdued after testing fresh record highs over the past few months.

Besides the Philly Fed manufacturing index, the weekly jobless claims data is also expected to be released today.
The median estimates point to a headline print of 219k for the week. This marks a slightly higher print for jobless claims of 211k seen just the week before.

The U.S. economy is expected to see absorb further slack and this could potentially mean a smaller than expected number of claims which could be a positive for the U.S. dollar.

Based on the above, today's binary signal is USDJPY. The currency pair looks to have formed a top near the current levels of 110.40 region with the Stochastics oscillator showing a strong bearish divergence. This could potentially point to a short term correction in prices.

Therefore, we are looking to purchase daily PUT options in USDJPY at 110.50 for a 21:00 GMT expiry time. We expect to see the U.S. dollar turn weaker and eventually push USDJPY to close lower on the day.

binary options signal usdjpy 17 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.