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USD/JPY binary signal - U.S. ADP Payrolls data - 06 Jul 2017

Signal details
Entry Price: 
112.50
Close Price: 
No trade
Direction: 
High
Expiry Time: 
20:00 GMT
How we trade
5/5 of 4 ratings

The payroll processing firm, ADP and Moody's will be releasing the monthly private payrolls data today at 1215 GMT. According to economists polled, private payrolls are expected to rise 184k for the month of June. The expectations are slightly below May's payrolls data which was registered at 253k. Expect to see revisions to previous month's payrolls data as well.

Over the past few months, there has been an increasing difference between the private payrolls and the official payrolls data, the nonfarm payrolls. As a result, the market reaction could be guarded in response to the ADP's data. On Friday, the official payrolls data will be released.

The U.S. labor market has been sending mixed signals since the past few months and the data reflects the underlying adjustments and slack in the U.S. job market. The unemployment rate was seen falling to 4.3% which marks a historic low since the start of the global financial crisis in 2008.

Besides the private payrolls data, other key economic data from the U.S. today includes the Institute of Supply Management (ISM) non-manufacturing PMI data. This will also be a key market moving event. Economists forecasts that the non-manufacturing PMI might have slipped from 56.9 in May to 56.5 in June.

However, expect to see some upside surprise considering that the ISM's manufacturing PMI posted a strong recovery in June. With the services PMI typically leading the way, we could expect to see some stronger than expected headline numbers.

Based on the above, the binary options trading recommendation for today is USDJPY. The currency pair was seen pausing in the rally after breaking above 113.00. We expect to see the U.S. dollar regain its momentum and as a result we look to purchase daily CALL options in USDJPY on the dip to 112.50 for a 20:00 GMT expiry time.

Establishing support at 112.50 on an intraday basis could see USDJPY continue the near term uptrend and therefore we could see the currency pair close higher on the day.

binary options signal usdjpy 06 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.