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USD/JPY binary signal - U.S Building permits - 18 Oct 2017

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Signal details
Entry Price: 
Close Price: 
No Trade
Expiry Time: 
20:00 GMT
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The monthly housing data from the United States will be released today which will see the building permits and the housing starts data coming out at 12:30 GMT. According to the estimates, building permits are expected to rise 1.25 million on the month. This is slightly below the downward revised 1.27 million from the month of August.

Housing starts are expected to remain steady, rising at a rate of 1.18 million and maintaing the steady pace from August. With the housing data being at the front of predicting the economic strength, today's data points could see some reaction from the market. The data is also expected to remain volatile with monthly revisions being common.

In August, home construction in the United States remained steady as building permits indicated an increase in activity. This was as expected on account of the hurricanes that hit the U.S. In September, there is a possibility that activity might have increased even further.

However, on the downside, the costs of construction materials were seen increasing which could dampen the outlook. Furthermore, the shortage of skilled workers in the construction sector was another downside risk for the data. But data is expected to be supported by the broader tightening in the labor market and low mortgage rates.

This potentially helps new buyers into the market, keeping the demand up and running. Therefore, the housing data for September is broadly expected to remain steady after showing acceleration in the previous month.

Based on the above, today's binary options trading signal is USDJPY. The currency pair has been trading sideways for the past few weeks with the range established at 113.00 as resistance and 111.74 as support.

Yesterday, USDJPY closed with a doji candlestick pattern which signals indecision in the market. In the near term, we expect USDJPY to slip to the short term support at 112.04. Therefore, we purchase daily CALL options at 112.04 for a 20:00 GMT expiry time. We expect to see price retrace to this level and eventually close higher on the day.

binary options signal usdjpy 18 Oct 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. 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. All risks and coasts associated with online trading are your responsibility.