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USD/JPY binary signal - U.S. Nonfarm payrolls - 01 Jun 2018

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Expiry Time: 
21:00 GMT
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The much anticipated monthly payrolls report will be released today by the U.S. Bureau or Labor Statistics at 1:30 GMT. According to the economists polled, the U.S. unemployment rate is expected to remain unchanged at 3.9% for the month of May.

The number of jobs added to the economy is expected to rise 190k. This marks a stronger pace of job gains after data from the previous month showed just 164k jobs being added.

Besides the jobs report and the unemployment rate, economists are predicting that the monthly average hourly earnings will rise 0.3% on the month. This marks a sharp increase in wage growth on a monthly basis after wages increased just 0.1% in April. Wage growth data has remained a key aspect for investors as a measure of inflation outlook.

A higher reading could potentially put the U.S. dollar on the front foot as expectations for probably four rate hikes this year gains more traction. The FOMC has so far signaled that it will hike rates three times this year.

The last interest rate hike was in March and the markets expect the next rate hike at the June FOMC meeting.

Besides the payrolls report, later in the day, the ISM's manufacturing PMI data will also be coming out. The report is expected to be bullish with the manufacturing index expected to rise from 57.3 in April to 58.2 in May.

Today's binary trading signal is USDJPY, the currency pair was seen breaking out from its consolidation earlier today. We expect to see the bullish momentum being maintained. Therefore, we are looking for daily CALL options at 109.00 for a 21:00 GMT expiry time.

Following a minor pullback to 109.00, USDJPY is expected to close higher on the day.

binary trading signal usdjpy 01 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.