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USD/JPY binary signal - U.S. Construction Spending - 02 Apr 2018

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Entry Price: 
Close Price: 
Expiry Time: 
20:00 GMT
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The U.S. monthly construction spending data will be coming out today at 14:00 GMT. According to the economists polled, construction spending in the U.S. is expected to rise 0.4% on the month in February. This follows a flat print for the month of January.

Construction activity remained broadly flat in January as investment in public construction projects rose slightly to offset the decline in private outlays leading to a flat reading for the month. January's construction activity data was below market expectations which pointed to a 0.3% increase.

The flat reading for January came after construction activity surged 0.7% in the previous month. The data underlined the fact that the U.S. housing activity had slowed during the month. This came amid higher mortgage rates which kept home buyers off the markets amid rising interest rates.

Furthermore, the fact that despite the U.S. unemployment rate was seen have remained near historic lows, the fact that there was still a number of people willing to look for work kept wage growth in check.

As a result, the rather stable pace of wage growth along with higher mortgage rates was seen slowing off the housing market, which in turn was reflected in reduced construction activity.

Based on the above, today's binary trading signal is USDJPY. The currency pair has been attempting to lift off after relatively forming a bottom around the support zone near the 106.00 level. Currently, the currency pair is looking to fill the gap from Thursday's close.

Therefore we are looking to purchase daily PUT options at 106.41 for a 20:00 GMT expiry time. Following the modest jump to the upside, we expect USDJPY to resume its declines in the near term and close lower on the day.

binary options signal usdjpy 02 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. 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.