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USD/JPY binary signal - U.S. building permits - 17 Apr 2018

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Signal details
Entry Price: 
107.05
Close Price: 
107.01
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
OTM
How we trade
4.5/5 of 8 ratings

Economic data from the United States today is relatively quiet. Only the building permits data is expected to be released at 12:30 GMT. The building permits report covers the period of March and economists forecast that building permits rose 1.33 million during the month.

This is a slight increase from 1.30 million seen the month before. The building permits data has been relatively stable over the past few months. However, other measures of the housing sector showed a slight deceleration.
Economists note that the decline in other measures of data on the housing sector comes about as the U.S. Federal Reserve continues to tighten monetary policy.

Besides the building permits data, a number of FOMC members are expected to speak later today. The speeches include that from San Francisco President John Williams, Governor, Randal Quarles and Atlanta Fed President Raphael Bostic.

The FOMC had released its meeting minutes last week where it showed that Fed members were more optimistic on the U.S. economy and the pace of inflation increase. Consumer prices are expected to rise at a faster in the near term which could signal faster pace of rate hikes.

Based on the above, today's binary signal is USDJPY. The U.S. dollar was seen trading weak on the day despite improving market sentiment. Investors were initially cautious on potential reaction from the Russian authorities on the targeted air strikes by the U.S. and its allies on Syria over the weekend.

However, a muted response from Russia saw the markets brushing aside the concerns. The USDJPY was seen retreating off the resistance level at 107.78. We expect to see further downside in price action in the near term.

Therefore, we are looking to purchase daily CALL options in USDJPY at 107.05 for a 21:00 GMT expiry time. We expect to see a modest rebound in prices after a brief pullback to the lows near 107.05.

binary options signal usdjpy 17 apr 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.