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USD/JPY Signal - Tankan surveys - 03 April 2017

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Expiry Time: 
20:00 GMT
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Confidence among the big manufacturers in Japan showed a modest improvement in the mood, official data showed. The survey was conducted for the second quarter of this year. The BoJ's Tankan manufacturing index rose to 12 from 10 in the previous quarter, but it was lower than the forecasts of 14.

On the other hand, the Tankan non-manufacturing index rose to 20, from 18 in the previous quarter, and was slightly higher than the forecasts of 19. The tankan sentiment index readings are based on subtracting the number of respondents in the survey who determine that the business conditions are poor and good.

The data did not bring about any major changes in the sentiment in the Japanese yen, although the improvement which is the second time in a row indicates a modestly improvement business sentiment among the major manufacturers in Japan. The data is something that the Bank of Japan will be focusing on when it meets later in the month to determine its monetary policy.

Besides the Tankan surveys, another report released earlier today showed that Japan's final manufacturing PMI rose to 52.4, which was slightly below 52.6 forecasts and down from 52.6 registered previously. The data from Markit showed that there was a modest improvement in Japan's manufacturing sector during the month of March. Growth was underpinned by rising output levels and new orders and employment in the industry.

USDJPY closed on Friday on a bearish note after price fell to a 4-month low at 110.11 last week. USDJPY has posted a steady increase since then with the current pullback to the rally seen as an opportunity for further gains that can be expected.

Therefore, for today's binary options trading strategy, we recommend to purchase daily CALL options between 111.00 - 111.50 for a 20:00 GMT expiry as we anticipate that USDJPY could be seen pushing higher over the next few days.

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.