The USD/JPY currency pair continues to move to the upside with the possibility of testing resistance near 104.60

USA - Consumer Confidence Index

Tomorrow, at 03:00 PM GMT, the Conference Board Corporation will announce the Consumer Confidence Index which measures the level of a composite index generated from data based on its regular monthly household survey.

Higher consumer confidence usually indicates future consumer spending, which can have a significant impact on overall economic conditions. Hence, binary options traders consider this type of survey based on indicators as a leading indicator.

Last month, the consumer confidence index came in at 104.4 and this month, expectations came in for a slightly lower reading, at 101.5.

Japan - Household Spending

On Friday, at 12:30 am GMT, the Japanese Statistics Bureau will release the annual household spending figure, which measures the value of inflation that measures all expenditures by Japanese consumers.

Foreign exchange investors view household consumer spending as a leading indicator of a country's economic health. This is because the sums spent by consumers have a multiplier effect on the overall economic activity in the country.

Last month, Japan's annual household spending figure fell by 4.6%, and expectations for this month are currently set for an additional decline of -2.6%.

Trading recommendations for the US dollar currency pair  / Japanese Yen

Since breaking above the downtrend line in a day  Oct 4, 2016 USD/JPY has been bullish and has gained about 280 pips over the past 3 weeks. However, after he reached near the 104.60 level,  The USD/JPY found strong resistance and the price bounced back to near the 38.2% Fibonacci retracement level. However, over the past few days, the uptrend seemed to be continuing, and the USD/JPY price once again reached its minor pivot zone near 104.20 last Friday.

Whereas, Japanese household spending is expected to decline again by  -2.6% this month, we believe that the fundamental outlook for the USD/JPY currency pair remains bullish this week. Thus, there is a good chance that prices will move up to test the resistance near 104.63 again.

Under these circumstances, it would be advisable for forex traders to consider placing a buy order for the USD/JPY currency pair with binary options brokers as soon as the price closes above the 104.20 level on the daily time frame.

 

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Ahmed A.
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