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USD/JPY binary signal - U.S. non-manufacturing PMI - 05 Mar 2018

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Signal details
Entry Price: 
105.65
Close Price: 
106.15
Direction: 
High
Expiry Time: 
21:00 GMT
Result: 
ITM
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The United States Institute of Supply Management will be releasing the non-manufacturing PMI report today at 15:00 GMT. According to the economists polled, the U.S. non-manufacturing PMI is expected to ease to 58.9 on the index for February. This comes following January's reading of 59.9.

The increase in January came after the non-manufacturing index had previously surged to 60.1 in October last year and then started to ease back falling to lows of 55.9. January's increase marked the fastest increase in the non-manufacturing sector at a faster pace.

All the sub-components of the index also registered strong gains. The business activity index was seen rising to 59.8 which was two percentage points higher from December and marked the fastest pace of increase in January. New orders were also reported to have accelerated to 62.7 which was about 8 percentage points higher from the previous report.

With the U.S. services sector forming one of the biggest contributors to the nation's GDP, today's ISM non-manufacturing index will play a crucial role in shaping the first quarter GDP expectations. Last week, the ISM's manufacturing PMI was seen beating estimates to register a reading of 60.8 with the report showing that activity in the U.S. in the manufacturing sector was rising at a strong pace.

Based on the above, today's binary signal is USDJPY. The currency pair was seen weakening last week to lows of 105.35. However, we expect to see some near term bounce in the USDJPY. Therefore, we would purchase daily CALL options at 105.65 for a 21:00 GMT expiry time as we expect the USDJPY to retrace the losses and close higher on the day.

binary options signal usdjpy 05 mar 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. 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.