USD/JPY Downtrend Likely to Prevail as Price Penetrated Important Support Level

Japan – Retail Sales

On Sunday, at GMT 11:50 p.m., the Japanese Ministry of Economy, Trade and Industry (METI) released the year-over-year retail sales data, which measures the changes in the total value of sales made by the retailers in Japan over the past month. This data is published in an annualized format.

Since the retail sales data acts as the main gauge of consumer spending in Japan and consumer spending accounts for a large portion of overall economic activity in the country, binary options traders consider this to be one of the most important fundamental indicators of the Japanese economy.

In November, the Japanese retail sales figure increased by 1.8% and the forecast for this month was set at a decrease of 0.1%. The actual figure came out as expected, at -0.1%.

United States – The Conference Board (CB) Consumer Confidence Index

Today, at GMT 3:00 p.m., United States based Conference Board Inc. (CB) will release its consumer confidence index, which measures the changes in the level of a composite index by surveying 5,000 households in the United States.

The large sample size (5,000) of the survey makes it one of the most comprehensive research data regarding the consumer spending pattern in the country. Since consumer confidence is correlated with consumer spending, binary options investors pay close attention to the CB consumer confidence index.

Last month, the CB consumer confidence index reading came out at 90.4 and the forecast for December is currently set at 93.9.

Trade Recommendation for the USD/JPY


Since breaking below the uptrend line on November 24, 2015, the USD/JPY has remained mostly range bound over the last few weeks. Although there were plenty of sharp price moves, the support level around the 120.30 area kept the USD/JPY price from falling.

However, last Friday, the USD/JPY price penetrated and closed below the 120.30 level for the first time since October.

Since this is the last week of the year and most large banks and financial institutions will remain closed, we do not expect the market to significant decisive moves this week. However, as the Japanese retail sales data have come out as expected, we believe the current downtrend in USD/JPY may continue for the time being.

Under the present circumstances, it would be recommended that traders consider placing a PUT order for the USD/JPY with their binary options brokers at the current market price, as long as it does not close above the 120.60 level this week.

Recommended Broker: Porter Finance

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