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USD/JPY binary signal - U.S. Inflation rate - 14 April 2017

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Expiry Time: 
20:00 GMT
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The U.S. consumer price index data (CPI) will be released today by the Bureau of Labor Statistics. Economists surveyed are expecting to see an unchanged print in headline inflation from the previous month. Excluding food and energy prices, the core inflation is expected to rise 0.2% from the previous month.

The slight moderation in inflation rate is expected amid falling energy prices during the month of March. Despite the dovish forecasts, the overall inflation outlook in the U.S. remains sturdy. So even in the event of a weaker than expected print, the U.S. dollar could remain well supported.

The data comes following yesterday's producer prices index. The producer price index measures inflation at the factory gate. Data showed that the PPI for the final demand fell 0.1% on a month over month basis in March. The final demand prices rose 0.3% in February and 0.6% in January. On a year over year basis, the producer price index rose 2.3% for the month ending March. This was slightly below February's increase of 2.4% which was the highest increase in the PPI.

Today's economic data might not have wider implications because the U.S. Federal Reserve will be tracking inflation based on the Personal Consumption Expenditure (PCE) which itself rose above 2% in February. However, a temporary slowdown is but expected in the month of March, which is likely to be brushed aside for the short term.

Based on the outlook, the binary options trading signal recommendation for today is USDJPY, which has been coming under pressure both in terms of the economic performance and the larger geo-political landscape. The U.S. dollar is expected to remain weak against the Japanese yen in the current risk aversion mode.

Therefore, look to purchase daily PUT binary options on a retracement to 109.35 for a 20:00 GMT expiry time. Following the retracement to 109.35, the currency pair is expected to post further declines.

USD/JPY binary signal

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.