USD/JPY Likely Start Bearish Retracement If US Unemployment Claims Continue to Rise

USD/JPY – Technical Analysis for US Binary Options Brokers

Japan – Household Spending

Binary Mate

Tomorrow, at GMT 12:30 a.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.

US 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 -0.4% and the forecast for this month is currently set at an increase of 0.2%.

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 came out at 275,000 and this week, the forecast is set at a slight increased figure, at 277,000.

Trade Recommendation for the USD/JPY

USD/JPY Analysis -US Binary Options Brokers - Dec 27-30 2016

Since breaking above the uptrend line on October 4, 2016, the USD/JPY has climbed up by around 1,670 pips so far. The uptrend was particularly accelerated after forming a large bullish outside bar (BUOB) on November 9, when the Republican Candidate for the President of the United States, Donald Trump, was elected.

However, as the US unemployment claims figure is expected to go up to 277,000 this week, a slight increase compared to the last reporting period, and the Japanese household spending is expected to increase by 0.2% over the last month as well, we believe the fundamental outlook for the USD/JPY would remain bearish this week.

Under the circumstances, it would be recommended that binary options traders consider placing a PUT order for the USD/JPY with their US binary options brokers as soon as the price closes below the 116.50 level on the daily time frame.

Top US Binary Options Brokers to trade USDJPY

Top US Broker: BinaryMate

US Regulated Broker: NADEX

Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com

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