USDJPY – Binary Options Technical Analysis
United States – CB Consumer Confidence
Tomorrow, at 3:00 p.m., the Conference Board Inc. will publish its Consumer Confidence index that measures the level of a composite index created from data based on a regular monthly household survey.
A higher consumer confidence usually indicates future consumer spending, which can significantly affect the overall economic conditions. Hence, binary options traders consider this kind of survey based index to be a leading indicator.
Last month, the CB Consumer Confidence index came out at 104.4 and this month, the forecast is that the index reading will come out slightly lower, at 101.5.
Japan – Household Spending
On Friday, 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.
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 4.6% and the forecast for this month is currently set at an additional decrease of -2.6%
Trade Recommendation for the USDJPY
Since breaking above the downtrend line on October 4, 2016, the USD/JPY has remained very bullish and the price climbed around 280 pips over the last three weeks. However, after reaching near the 104.60 level, the USDJPY found strong resistance and the price retraced back to near the 38.2% Fibonacci retracement level.
However, over the last few days, the uptrend seems to be resuming, as the US/JPY price once again reached the minor pivot zone near 104.20 last Friday.
As the Japanese household spending is expected to once again decline by -2.6% this month, we believe the fundamental outlook for the USDJPY would remain bullish this week. Hence, there is a good chance that the price will move up to test the resistance near 104.63 once again.
Under the circumstances, it would be recommended that binary options traders consider placing a CALL order for the USDJPY with their binary options brokers as soon as the price closes above the 104.20 level on the daily time frame.
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