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USD/JPY binary signal - U.S. PPI Data - 13 July 2017

Signal details
Entry Price: 
113.40
Close Price: 
113.21
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
ITM
How we trade
5/5 of 3 ratings

The United States producer prices index data is expected to be released today at 12:30 GMT. According to economists polled, the U.S. PPI is expected to remain flat for a second consecutive month. The core PPI which excludes the volatile food and energy prices is expected to rise 0.2%, slightly below the 0.3% gains seen the month before.

The overall weak forecast in the PPI could eventually play out on the U.S. dollar as the inflation at factory gate could signal further weakness in the U.S. consumer prices.

In May, the PPI data was mixed. Producer prices rose at the fastest pace in nearly three years. The core PPI in May was seen at 2.1% on a year over year basis. This was the highest since May 2014 and broke past the Fed's 2% inflation target rate. The price gains came due to a jump in energy and fuel prices as well as vehicle sales and fresh food.

The headline PPI was seen rising to 2.4% in the month of May. Price for final demand services grew 0.3% on the month slightly below 0.4% previously.

The PPI data will be released alongside other key economic indicators. This includes the weekly unemployment claims as well. Economists are expecting to see unemployment claims rise 245k, slightly below 248k seen the week before.

Amid the economic releases, the Fed speeches continue. Janet Yellen will be giving her testimony to the U.S. Congress for the second day, while other Fed members including Evans and Brainard will be speaking as well.

Combined, this could keep the U.S. dollar a bit volatile. Based on the above, our preferred binary options trading signal recommendation is USDJPY. We expect to see price action continue to push lower with the eventual decline to 112.00.

Therefore, we purchase daily PUT options in USDJPY at 113.40 for an expiry time at 20:00 GMT. Following the reversal off the 113.40 support, USDJPY is likely to establish resistance and therefore close lower on the day.

binary options signal usd/jpy 13 Jul 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.