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EURJPY – AUGUST 7TH 2014

WELLS FARGO 58.345 17:30 22.02
OIL-APR17 (BRENT) 55.785 17:30 22.02
TOYOTA (US) 114.260 17:30 22.02
COLGATE-PALMOLIVE 73.085 17:30 22.02
FERRARI 65.855 17:30 22.02
TSX 60 936.300 17:30 22.02
NZD/CAD 0.94522 17:30 22.02
ALIBABA 104.995 17:30 22.02
BOEING 175.425 17:30 22.02
PFIZER 33.705 17:30 22.02
AUD/USD 0.76870 17:30 22.02
AUD/JPY 87.211 17:30 22.02
GBP/USD 1.24415 17:30 22.02
EUR/USD 1.05560 17:30 22.02
GENERAL ELECTRIC 30.305 17:30 22.02
S&P 500 2362.140 17:30 22.02
JP MORGAN CHASE 90.965 17:30 22.02
METRO AG 29.860 17:30 22.02
SILVER 17.993 17:30 22.02
AIG 64.085 17:30 22.02
GOLD VS OIL 22.1128 17:30 22.02
OIL-MAR17(WTI CRUDE) 53.980 17:30 22.02
USD/CAD 1.31958 17:30 22.02
FTSE MIB F-MAR17 18867.500 17:30 22.02
GOLD 1233.564 17:30 22.02
DOW 20760.31 17:30 22.02
TELEFONICA 9.354 17:30 22.02
AUD/CAD 1.01435 17:30 22.02
DOLLAR INDEX-MAR17 101.390 17:30 22.02
3M 185.110 17:30 22.02
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By: Adam Stone
August 7th 2014 6:06am GMT, London UK
 

Today’s Binary Options Trading Strategy:
• Currency Pair: EURJPY
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek call options on dips below 136.700
• Upside Potential: The upside potential for this call option is 120 pips to 137.900
• Downside Potential: The downside potential for this call option is 60 pips to 136.100

The EURJPY has reversed its most recent rally over the past four trading days which took this currency pair back down to its horizontal support level. The correction to the EURCHF from an intra-day high of 138.015 reached on August 1st 2014 up to an intra-day low of 136.163 reached on August 6th 2014. This correction has also resulted in the formation of a double bottom which is a bullish chart pattern and suggests a potential reversal in price action.

EURJPY

The EURJPY was pushed lower yesterday by a series of economic disappointments out of the Eurozone which halted and reversed its previous rally from depressed levels. The double bottom formation is expected to give traders a solid platform for a reversal in price action. Binary options traders can take advantage from the expected reversal with a call option. Today’s binary options trading strategy suggests call options to be placed below 136.700 for a risk/reward ratio of 1.0/2.0.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURJPY currency pair:

• German Industrial Production – Economists expect a rebound in German industrial production from May’s contraction of 1.8%. Industrial production for June is expected to expand by 1.2% on a monthly comparison. Annualized industrial production is expected to slow to 0.3% in June which is a sharp slowdown from May’s annualized expansion of 1.3%.
• European Central Bank Rate Decision – Market participants expect the European Central Bank to stand pat and leave rates unchanged. The ECB cut all three rates with which they influence the Euro and therefore the Eurozone economy during their previous meeting which has caused a sharp sell-off in the Euro. Currently interest rates stand at 0.15% after a 10 basis point cut from 0.25% during the previous ECB meeting. The marginal lending facility rate was cut by 35 basis points to 0.40% from the previous level of 0.75% and marked the biggest reduction amongst the three rates. In a widely expected move the ECB decided to initiate a negative deposit facility rate of -0.10% after a 10 basis point cut during the previous meeting. No change is expected as the ECB is likely to wait for the latest cuts to work through the economy. The Euro may find comfort in the lack of action and rally from extremely depressed levels.
In addition the following economic report out of Japan already impacted the quote currency, the Japanese Yen, of the EURJPY currency pair:
• Bond/Equity Transaction – Japanese bond transaction showed purchases of Japanese bond traders of foreign bonds surge to ¥897.4 billion for the week which ended August 1st 2014. This compares to sales of foreign bonds worth ¥301.6 billion. Foreigners bought ¥367.5 billion worth of Japanese bonds which compares to ¥164.7 billion worth of purchase in the previous week. Japanese equity traders bought ¥246.2 billion worth of foreign equities which follows equity purchases worth ¥24.3 billion during the preceding period. Foreign equity traders bought ¥94.9 billion worth of Japanese equities which follows ¥203.3 billion worth of purchases in the preceding week.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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