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USD/JPY binary signal - U.S. ISM manufacturing PMI - 02 Oct 2017

Signal details
Entry Price: 
112.75
Close Price: 
112.74
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 7 ratings

The Institute of Supply Management (ISM) will be releasing the monthly PMI numbers for the manufacturing sector today at 14:00 GMT. According to the economists polled, the median estimates for the manufacturing PMI is expected to fall by 0.8 points to 58.0 for September.

Historically, this is still at high levels and signals continued expansion in the manufacturing sector. In August, the manufacturing PMI registered 58.8 on the index and grew steadily over the past 12 months. The August PMI levels were also the highest since August 2011, a 5-year high. It was also 3.4% above the 12-month average of 55.4 and beat the average PMI trend of 56.7 for 2017.

The August report showed that growth increased in nearly 14 out of the 18 manufacturing sectors that contributed to the index. While the expectations for September remain slightly to the downside, it still is an impressive number.

However, considering that U.S. was hit by the natural disasters in September, it is likely that there could be some downside disappointments in the PMI index. Still, the markets are likely to shrug aside the anomaly. The Fed and various other officials have already acknowledged that economic indicators could slow for the month of September.

Based on the above, today's binary options trading signal is for USDJPY. The currency pair has been seen trending strongly in the past few weeks but price action has been consolidating above 112.26 level of support. Price action has also stalled above this support level with price failing to post any fresh highs.

This suggests some downside momentum in price action in USDJPY which could mean that prices could be declining in the near term.

As a result, the support level at 112.26 remains critical and comes at a risk of being breached. Short term resistance is seen at 112.75. We expect to see price reversing at this level. Therefore we purchase daily PUT options at 112.75 for 20:00 GMT expiry time as we expect USDJPY to decline and close lower on the day.

binary options signal usdjpy 02 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.