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USD/JPY binary signal - U.S. flash manufacturing and services PMI - 24 Nov 2017

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21:00 GMT
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Markit will be releasing the U.S. manufacturing and services PMI today at 14:45 GMT. The flash PMI's will cover the month of November and will offer some early insights into how the economic activity in the manufacturing and services sector has fared.

Economists polled are expecting to see flash manufacturing PMI to rise to 55.1 for November. This comes after October's manufacturing activity showed that index falling to 54.6. The services PMI activity is forecast to rise slightly to 55.5, up from October's 55.3 reading.

Although the ISM's manufacturing and non-manufacturing PMI gain more significance, the data from Markit being released today will potentially set the tone for the markets. This comes as the U.S. markets return from the Thanksgiving holiday. However, trading is still expected to remain subdued.

The U.S. economy has been broadly positive so far. The flash numbers come ahead of next week's ISM manufacturing data and other fresh economic details that will be released in the following weeks.

On Wednesday, the Federal Reserve released the meeting minutes. The minutes showed that Fed officials were ready to hike interest rates in December. But the minutes were also dovish as some members worried that inflation could remain weaker for longer.

While this sent the U.S. dollar briefly lower, the economic activity is expected to breathe some life back into the dollar as a result. The third quarter GDP in the U.S. was seen rising 3.0% maintaining a steady pace of economic expansion.

Today we are trading USDJPY, the currency pair weakened significantly on Wednesday but managed to form a doji candlestick pattern yesterday. This could suggest a short term reversal.

Therefore we are looking to purchase daily CALL options in USDJPY at 111.30 for 2100 GMT expiry time. We expect USDJPY to reverse some of the losses to close higher on the day.

binary options signal usdjpy 24 Nov 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.