USD/JPY – Technical Analysis for US Binary Options Brokers
Japan – Average Cash Earnings
Today, at GMT 1:00 am, the Japanese Ministry of Health, Labour and Welfare released the year-over-year average cash earnings, which measures the changes in the total value of employment income collected by workers in the country over the past 12 months.
Since earnings are directly correlated with consumer spending, binary options investors consider a rise in the average cash earnings as a signal that the Japanese consumers will likely increase their spending. As consumer spending makes up a large portion of the Japanese GDP, it can predict the future strength of the Yen.
Last month, the Japanese average cash earnings increased by 0.5% and the forecast for this month was set at a 0.5% increase. But, the actual figure came out much lower, at 0.1%.
United States – Unemployment Claims
On Thursday, at GMT 2:30 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.
Binary options traders 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 246,00 and the forecast for this week is set at an increase to 249,000.
Trade Recommendation for the USD/JPY
After finding a strong resistance near the 118.66 level, the USD/JPY started a major retracement move in early January 2017, which has pushed the price towards the 38.2% Fibonacci retracement level last week.
As the US unemployment claims figure is expected to increase to 249,000, it would certainly add to the bearish momentum of the USD/JPY this week. Therefore, if the USD/JPY price penetrates below the 38.2 Fibonacci retracement level, which is at 111.56, it would likely attract additional bearish momentum in the market.
Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the USD/JPY with their binary options brokers as soon as the price closes below the 111.56 level on the daily timeframe.
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