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USD/JPY binary signal - U.S. Final GDP - 29 Jun 2017

Signal details
Entry Price: 
112.30
Close Price: 
112.05
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 4 ratings

The final revised U.S. Gross Domestic Product (GDP) will be released today at 1230 GMT. The data is expected to show no changes from the second revision. The U.S. GDP was registered at an upwardly revised 1.2% quarterly growth. This was for the period ending March 2017. Previously, in the first estimate, the U.S. GDP was registered at 0.9%, which was the lowest pace of economic activity in more than a year.

The GDP numbers, because they are lagging and reflects the first quarter, which is now nearly three months later is unlikely to change the market sentiment much. In the near term, the markets are likely to focus on the comments from Fed officials. Recently, there have been an increasing number of signs about the U.S. economy slowing down.

Typically, the second quarter is the strongest with economic activity picking up pace strongly. But that seems to be lacking which is making many investors ask the question on whether the Fed will be able to continue its tightening cycle.

On the other hand, the European Central Bank Chief, Mario Draghi signaled earlier this week that the ECB could look at tapering its bond purchases. Mr. Draghi said that the ECB could cut down its QE purchases by 20 billion euro. This would mark a second cut to the ECB's QE purchases which was at 80 billion euro initially.

The recent uptick in the economic recovery in the eurozone is widely attributed to this. However, inflation continues to remain a major concern. For the most part, inflation is nowhere near the ECB's 2% inflation target rate.

Thus, the current rally on the hawkish comments from the ECB president is evidence that the rally could be outstretched.

Based on the above, today's binary options signal recommendation is for USDJPY, which aptly reflects the market sentiment. We expect to see further upside in the market. Therefore we would purchase daily CALL options in USDJPY at 112.30 for 20:00 GMT expiry time.

With USDJPY breaking past the resistance level at 112.00, further upside is likely to continue with USDJPY looking to close higher on the day.

binary options signal usdjpy 29 Jun 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.