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USD/JPY binary signal - U.S. second quarter GDP - 30 Aug 2017

Signal details
Entry Price: 
109.50
Close Price: 
No Trade
Direction: 
Low
Expiry Time: 
20:00 GMT
How we trade
5/5 of 3 ratings

The U.S. Department of Commerce will be releasing the second quarter GDP numbers later today. According to the median estimates, the U.S. gross domestic product is forecast to rise slightly to 2.7%. This is higher than the first estimates of 2.6%. A beat on the estimates is unlikely to change the sentiment in the markets as traders will be focusing on the other important release for the day.

Ahead of the GDP report, the U.S. private payrolls numbers, the ADP payrolls will be coming out. Forecasts show that private sector hiring saw 186k jobs being added in the month of August. This is slightly higher from July's print of 178k. The ADP payrolls will no doubt shed light into what the markets can expect when the official payroll numbers will be released on Friday.

The U.S. economy has been chugging along at a slow pace. The markets are currently focused on the pace of the rate hike from the Federal Reserve as well as the shifting rhetoric from the White House. The ongoing tensions between the U.S. and North Korea, with the latter test firing a missile yesterday is likely to keep investor's risk appetite in check.

The U.S. dollar continues to take a beating as a result with the markets continuously reducing the odds of further rate hikes this year from the Fed. The Japanese yen has also strengthened on the back of the ongoing global tensions.

Adding to the woes is the fact that the White House has seen a number of officials leaving their positions within a short span of time. This has also raised the odds of whether President Trump can proceed with his proposed plans.

Based on the above, today's binary options signal is USDJPY. The currency pair has fallen to fresh lows yesterday at 108.26. We expect that in the near term, the U.S. dollar will be testing the resistance level formed at 109.50.

Therefore, we would purchase daily PUT options at 109.50 for a 20:00 GMT expiry time as we expect USDJPY to weaken near the resistance level to close lower on the day.

binary options signal usdjpy 30 Aug 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.