Sorry, you need to enable JavaScript to visit this website.

USD/JPY binary signal - BoJ Gov. Speech - 17 April 2017

Signal details
Entry Price: 
108.55
Close Price: 
108.93
Direction: 
Low
Expiry Time: 
20:00 GMT
Result: 
OTM
How we trade
5/5 of 3 ratings

Amid a quiet day of trading with some parts of Europe and the U.S. closed for trading, the economic calendar from Asia stands out. The Bank of Japan governor, Kuroda will be speaking today on monetary policy which will be the main event risk for the day. With no other economic indicators to fall back upon, market participants will be closely scrutinizing the speech from the Boj Governor today.

Kuroda is expected to maintain his views that the Bank of Japan will be leaving monetary policy untouched, reiterating his comments from a few weeks ago where the central bank chief brushed aside rumors of the BoJ looking at tapering its QQE purchase program.

For the moment, the markets are looking to the global economic and political developments. The U.S. dollar is trading somewhat mixed amid last Friday's weak data on both inflation and retail sales. Over the weekend, news about the Turkish referendum which saw the Yes vote win by a strong margin is also keeping the investors on the edge. Meanwhile, the ongoing tensions between the U.S. and North Korea are also likely to see investors prefer the safe haven assets, which could see the Japanese yen strengthen as a result.

USDJPY is seen falling to a fresh 5-month low this morning and the declines are likely to continue as price action could be seen testing the next main support at 107.00, unless risk sentiment improves in which case, there could be some upside in store for USDJPY.

Considering the above, today's binary options trade recommendation is to look for daily PUT options in USDJPY as any bounces in the currency pair could be short lived. Technical support at 108.50 - 108.60 is seen being breached making it an ideal target for any rebound in prices. The overall bias in USDJPY remains to the downside.

Therefore, purchase daily PUT options in USDJPY at 108.55 on a short term correction for a 20:00 GMT expiry time. With prices likely to retrace to this level on a short term bullish divergence, we can expect to see the declines in USDJPY continue thereafter.

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.