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USD/JPY binary signal - U.S. Flash manufacturing and services PMI - 23 May 2017

Signal details
Entry Price: 
111.75
Close Price: 
111.81
Direction: 
High
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 4 ratings

The flash or preliminary manufacturing and services PMI data for the month of May will be released today at 13:45 GMT by Markit. The economists polled are expecting to see manufacturing activity pick up from 52.8 registered last month of 53.2, while the services PMI is expected to rise from 53.1 last month to 53.3 in May.

A better than expected data could possibly help fuel expectations that the manufacturing and services sector in the U.S. managed to post some growth in the month of May. Previously, regional manufacturing surveys showed a mixed picture. While the New York Fed's manufacturing gauge as measured by the NY Fed manufacturing index slipped in May, the Philadelphia Fed manufacturing index expanded.

The manufacturing activity in the United States has remained soft after posting a strong uptrend for the most of last year and early in to February this year. However, manufacturing and services started to dip thereafter, especially during the first quarter of this year.

The U.S. dollar opened on a weaker note yesterday and continued to extend the declines from last week as the US dollar index futures fell to a fresh 6-month low yesterday. The declines came despite a rather quiet day with not much of economic releases in store.

The ideal currency pair for today's binary options trade signal is USD/JPY. The currency pair has been trading flat for the past two sessions after posting a high and a low of 111.74 and 110.71. A break out from either of these levels will signal a continuation from the breakout.

The overall trend remains to the downside, but watch for a possible breakout to the upside above 111.74, which will see the currency pair continue higher towards 112.95 where resistance is likely to be tested.
Therefore, purchase CALL options at 111.75, for a 20:00 GMT expiry time as we expect to see some upside prevailing in USDJPY.

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.