USD/JPY Tests Support Near 112.00 as forecast for US Building Permits Decline

Japan – Trade Balance

On Sunday, at GMT 11:50 p.m., the Japanese Ministry of Finance released the month-over-month national trade balance figure, which measures the difference in value between the total imported and exported goods over the last month. This data is usually reported by being seasonally adjusted in order to gauge the true changes in the trade balance situation of Japan.

The demand for a nation’s currency is directly correlated to the export it makes minus the net imports because foreigners must convert their currency to Yen in order to pay Japanese exporters. Hence, binary options investors and market analysts consider the trade balance to be a leading indicator of a currency’s strength.

Last month, the Japanese trade balance figure came out at 0.35 trillion (yen) and for the forecast for this month was set at 0.27 trillion. However, the actual figure came out much higher than expected, at 0.36 trillion.

United States – Building Permits

On Tuesday, at GMT 1:30 p.m., the US Census Bureau will release the Building Permits figure, which is an annualized number of new building permits for the residential housing sector issued during the last month.

Since getting a building permit usually indicate future construction work, binary options traders consider this data to be a leading indicator of the overall economic activity in the country.

Last month, 1.32 million building permits were issued and this month, analysts are expecting the figure to come out around 1.27 million.

USD/JPY Forecast

Since September 8, 2017, the USD/JPY remained in a bullish trend, went up by around 730 pips, and formed a well-respected uptrend line in the process. After forming a bearish outside bar on November 6, the USD/JPY started a bearish retracement and went down to test the support near 110.95, where it failed to close below the support. Consequently, the pair bounced and currently trading just above the support near the 112.00 level.

As the US building permits figure is expected to come lower than last month, but the Japanese trade balance came out higher than the estimate, we believe it would set a bearish fundamental outlook for the USD/JPY this week. Therefore, if the USD/JPY closes below the support near 112.00, it would likely attract additional bearish momentum in the market.

Hence, US binary options traders should look out for trading opportunities below this major support level around 112.00.

BTC/USD Forecast

After crossing the 15,000 level, the BTC/USD bulls found renewed momentum and crossed above the 17,500 level without facing much resistance. However, as soon as the BTC/USD reached near the 19,500 level, the pair found significant resistance and started a retracement towards the 17,500 level, where it found support.

The recent bearishness of BTC/USD found momentum an hour after the CME Group launched the bitcoin derivatives in futures markets, but the derivatives were selling above 20,000. Nonetheless, if the actual BTC/USD price closes below the psychological support around the 17,500 level, it will likely find additional bearish momentum in the market.

Hence, US bitcoin traders should look out for trading opportunities below this major support level around 17,500.

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