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USD/JPY binary signal - U.S. Non-manufacturing PMI - 05 Jun 2018

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Expiry Time: 
21:00 GMT
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The U.S. ISM non-manufacturing PMI data will be released today at 15:00 GMT. The report will cover the non-manufacturing or services activity for the month of May. According to the economists polled, non-manufacturing activity is expected to rise to 57.9 following a declinee to 56.8 in April.

Non-manufacturing activity slipped since March after reaching a peak of 59.9 in February when the index rose to highs of 59.9. Following three consecutive months of declines, non-manufacturing activity is expected to rise again.

The forecasts broadly fall in line with an overall improvement in the U.S. economy. The first quarter GDP had increased at a pace of 2.2% which was slower than the initial estimates that was reported. However, since the start of the second quarter, the U.S. economy was seen rising across the board with gains coming from job growth and inflation.

Last week, the ISM reported the manufacturing index data which increased higher than the median forecasts and came amid a strong surge in manufacturing activity across the various regions.

The services sector, which contributes strongly to the nation's GDP is expected to also strengthen based on the forecasts for the non-manufacturing activity. This comes amid the recent jobs report which showed strong job gains across the services industry as well.

The data is only likely to increase the expectations of ongoing uptrend in the U.S. economy which translates to higher interest rates in the coming months.

Today's binary trading signal is USDJPY, the currency pair has been in a strong uptrend following Friday's strong jobs report and ISM manufacturing activity the U.S. dollar had eased back slightly.

Following the breakout above the support level at 109.76 – 109.70 level, USDJPY has been trading rather flat. We would consider daily CALL options at 109.75 for a 21:00 GMT expiry time. With the decline to 109.75 level of support, we expect that USDJPY will close higher on the day.

binary trading signal USDJPY 05 jun 2018

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.