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USD/JPY binary signal - U.S. Nonfarm payrolls - 08 Dec 2017

Signal details
Entry Price: 
113.50
Close Price: 
113.49
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
How we trade
5/5 of 6 ratings

The markets will be looking to one of the key economic indicators today. The U.S. Bureau of Labor Statistics will be releasing the monthly payrolls report today at 13:30 GMT. This will be the final payrolls report ahead of the FOMC meeting next week. As a result, the nonfarm payrolls report will gain even more attention.

According to the economists polled, the U.S. economy is forecast to add around 200k jobs during the month of November. This is slightly lower than the 216k jobs that were seen in the previous month. Despite the weaker print, the forecasts are above average.

The U.S. unemployment rate is expected to remain steady at 4.1%, unchanged from the previous month. The average hourly earnings are expected to rise by a solid 0.3% on the month. This comes after the previous month's data showed no change to wages on the month over month basis.

The payrolls report is broadly expected to remain positive and this is expected to convince the FOMC officials of a rate hike when they meet next week. Most recently, the Fed Chair Janet Yellen told lawmakers in her testimony that the current U.S. economy was strong enough to digest another rate hike.

Today we trade USDJPY, the currency pair remains broadly trading flat. However, we expect that with today's payrolls data this could potentially change. Earlier this week, the private payrolls firm ADP showed that private sector hiring increased more than expected. This could see the official payrolls numbers are potentially beating forecasts. The U.S. dollar turned bullish against the Japanese yen yesterday.

We are looking to purchase daily PUT options at 113.50 for a 21:00 GMT expiry time. The strong gains in the USDJPY is expected to see a pull back in the near term after price is expected to rally towards the 113.50 level of resistance. We expect USDJPY to potentially reverse the gains and close lower on the day.

binary options signal eurusd 08 Dec 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.