USD/JPY Bears May Find Momentum If Major Support Near 110.95 Breaks

USD/JPY – Technical Analysis for US Binary Options Brokers

United States – Unemployment Claims

On Thursday, at GMT 12:30 p.m., the US Department of Labor will release the unemployment claims figure, which measures the changes in the number of people who claimed for unemployment insurance over the last week.

US Binary options brokers consider the unemployment claims data to be one of the most important fundamental indicators of the US job market. This is primarily because unemployment and consumer spending has direct correlation and an increasing number of unemployment claims indicate lower consumer spending in the economy, which makes up the bulk of the economic activity in the United States.

Last week, the US unemployment claims figure came out at 233,00 and the forecast for this week is set at an increase to 242,000.

Japan – Household Spending

Later, at GMT 11:30 p.m., the Japanese Statistics Bureau will release the year over year Household Spending figure, which measures the inflation adjusted value of all expenses by the Japanese consumers.

Binary options investors consider the household consumer spending to be a leading indicator of a country’s economic health. This is because the amounts spent by consumers have a ripple effect on the overall economic activity in the country.

Last month, the year over year Japanese Household Spending figure decreased by -0.1% and the forecast for this month is currently set at an increase of 0.6%.

USD/JPY Forecast

USD/JPY Analysis for US Binary Options Brokers

Since March 2017, the USD/JPY has remained mostly range bound and traded within 108.15 and 115.35. However, USD/JPY did form a long-term downtrend line since March, which was broken in early July. Regardless, the bullishness soon faded away and over the last three weeks, the USD/JPY price has fallen by around 390 pips.

Earlier today, the USD/JPY price was rejected near the support level around 110.95, and currently the price is trading just above this support, but below the resistance around 111.20.

As the US unemployment claims figure is expected to slightly increase to 242,000, but the Japanese household spending figure is expected to increase by 0.6%, we believe it would likely set a bearish fundamental outlook for the USD/JPY this week. Therefore, if the USD/JPY closes below the support around 110.95, 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 110.95.

Top US Binary Options Brokers To trade USD/ JPY

Top US Broker: BinaryMate

US Regulated Platform: NADEX

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