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USD/JPY binary signal - U.S. Durable goods orders - 24 Oct 2017

Signal details
Entry Price: 
113.00
Close Price: 
No trade
Direction: 
High
Expiry Time: 
20:00 GMT
How we trade
5/5 of 4 ratings

The U.S. Census bureau will be releasing the monthly durable goods orders report today for the month of September. According to the economists polled, core durable goods orders are expected to rise 0.5% on the month. This will be the same pace of increase seen in August. Durable goods orders are expected to rise 1.1%, slightly lower than the 2.0% increase seen in August.

In August, the gains came as orders for non-defense capital goods that excludes aircraft increased an annual pace of 6.4% in the three months ending during the month. Shipments were seen increasing 7.5% as well.

For September, the declines are expected to come as a result of the hurricanes Harvey and Irma. But at the same time, the rebuilding efforts are expected to contribute to the upside in September.

The durable goods orders figures comes ahead of the advance GDP figures coming out this week. Economists are expecting to see the preliminary GDP report to show a 2.7% increase in the three months ending September.

However, the third quarter GDP is expected to rise at a slower pace compared to the previous quarter. As a result the GDP data could be influenced based on today's durable goods orders report. This could potentially impact the second revision for the GDP data. As a result, the preliminary GDP report could not have a major impact if the durable goods report will come out stronger or weaker.

Based on the above, today's binary signal is USDJPY. The currency pair was seen coming under pressure over the weekend elections that were held in Japan.

The U.S. dollar which opened on Monday gapping higher was seen declining as price action filled the gap by Monday's close. Still, the current retracement is expected to stall near 113.00 where support is likely to be established.

Therefore, we are looking to purchase daily CALL options in USDJPY at 113.00. We expect the U.S. dollar to test the support level before closing higher on the day.

binary options signal 24 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. 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.