Japan – BSI Manufacturing Index
Tonight, at GMT 11:50 p.m., the Japanese Ministry of Finance will release the BSI manufacturing index, which is also known as the Business Survey Index (BSI) among binary options traders. The BSI manufacturing index measures the level of a diffusion index by surveying large-scale manufacturers in the country.
Since the survey asks respondents to rate the relative level of generation business condition in Japan, from their own perception, binary options investors consider the BSI manufacturing index reading to be a leading indicator of the overall Japanese economy.
In March, the BSI manufacturing index reading came out at 2.4 and the forecast for June is currently set at a slightly increased reading, at 3.2.
United States – Core Retail Sales
On Thursday, the US Census Bureau will release the month-over-month core retail sales figure, which measures the changes in the total value of sales made by the retail sector in the country over the past month.
Although the retail sales offer a big picture regarding the retail sector, the core retail sales data exclude the sales made by the automobile industry as motor vehicle prices tend to be volatile that distort the overall retail sales value. Hence, binary options traders consider the core retail sales data to be more accurate and any drastic change in the retail sales figure creates a larger market impact.
In May, the total value of core retail sales increased by 0.1% and the forecast for June is currently set at a significantly improved figure, around 0.7% increase.
Trade Recommendation for the USD/JPY
The USD/JPY has traded within the range between 116.00 and 121.80 for the last several months. However, after the pair broke above the triangle pattern on May 1, the bullish momentum pushed the price above the resistance zone around the 121.80 level by May 26 and created an uptrend line in the process.
After the USD/JPY price was rejected around the 125.85 level, it started a sharp retracement. Currently, the pair is trading near this uptrend line, around 122.60.
Given that the US core retail sales is forecasted to go up significantly compared to last month, 0.7% in June compared to 0.1% in May, this week’s fundamental outlook for the USD/JPY is bullish.
However, today, the USD/JPY price has a large fall towards the uptrend line, and it is highly recommended that binary options investors wait for further price action confirmation prior to placing any CALL orders with this pair.
Under the circumstances, it is recommended that traders consider placing a CALL order with their binary options brokers for the USD/JPY, once the price breaks above today’s high, at 124.62.
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