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USD/JPY binary signal - US Import prices - 12 April 2017

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Signal details
Entry Price: 
Close Price: 
No trade
Expiry Time: 
20:00 GMT
How we trade
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The U.S. monthly import prices data from the Bureau of Labor statistics will be released today. The data is forecast to show a 0.3% decline in March, after rising 0.2% in February. The data is expected to fall after February's import prices showed a higher than expected non-fuel import prices. The gains came after import prices rose 0.6% in January. Export prices also gained in the previous month, rising 0.3% after logging in a 0.2% increase in January. Today's import prices data will have some impact on the U.S. GDP forecasts for the second quarter.

While the above data will have some influence on the USDJPY currency pair, the broader market sentiment is currently at play. After showing some signs of stabilization, the Japanese yen continued to strengthen once again yesterday. The gains came after risk sentiment worsened amid uncertainty surrounding the U.S. airstrikes in Syria and possible altercations with North Korea.

Therefore, besides the economic influence on the markets, the sentiment will also be playing a big role that could shape the markets. The lack of any Fed speeches from FOMC members also adds to the uncertainty. The Fed Chair, Janet Yellen had previously spoken late on Monday evening, but refrained from going into too much detail about monetary policy. This has also kept investors guessing on the timing of the next rate hike which is currently speculated to be in June.

For today's binary options trading signal we recommend daily PUT options near 110.28 which is an intraday support/resistance level. Given the current pace of declines, USDJPY could be seen attempting to break out higher in the near term that could see a test of resistance at 110.28.

A retracement to 11.28 could signal further continuation to the downside as the bearish momentum continues to extend prices lower in the near term. Thus, look to buy daily PUTs near 110.28 for a 20:00 GMT expiry time.

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.