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USD/JPY binary signal - U.S. Building permits - 17 Nov 2017

Signal details
Entry Price: 
112.65
Close Price: 
112.08
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 7 ratings

The U.S. census bureau from the department of commerce will be releasing the monthly building permits data today at 13:30 GMT. According to the economists polled, the median estimates show that building permits might have increased moderately at a pace of 1.25 million for the month ending October. This is somewhat higher than the previous month's print of 1.23 million.

Last month, building permits fell to a one-year low in the month of September. However, the declines in the permits were attributed to the hurricanes that disrupted work. The markets also shrugged aside the modest print as a result.

Still, the third quarter data showed that housing markets remained a drag on the economy. On a seasonally adjusted basis, building permits were seen rising just 4.7%. This was the slowest pace of increase since September last year.

All sub components of the building permits data in September weakened significantly. This included single family home building as well. Most of the declines in the building permits came from the hurricane hit regions in the United States.

Following September's decline, the markets are expecting to see a modest pickup in the building permits activity. This could potentially renew the optimism about the U.S. housing markets.

Alongside the building permits report, the housing starts data will also be released. The economists polled expect housing markets to rise to 1.19 million units for the month ending October. This is somewhat better than the previous month's print of 1.13 units. The declines in the housing starts also came about due to the impact of the hurricanes.

Based on the above, today's binary options signal is USD/JPY. The currency pair has posted strong declines from the 114.00 resistance level with the declines accelerating.

We would place daily PUT trades at 112.65 for a 21:00 GMT expiry time. We expect the short term retracement to stall near this resistance level following which USDJPY could be seen closing lower on the day.

binary options signal USD/JPY 17 Nov 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.