GBP/JPY binary signal - UK Manufacturing Production - 11 Jun 2018

Hello everyone, I've not been posting analysis here because I stopped trading, I'm fully back now, and today we shall be looking at the GBPJPY pairs.

The monthly manufacturing production figures will be released by the UK's Office for national statistics (ONS). According to the economists polled, the manufacturing production is expected to rise 0.3% on a month over month basis in May. This follows a 0.1% decline in the month of April.

On a year over year basis, manufacturing production is expected to expand at a pace of 3.1%. This is a modest increase, up from 2.9% registered on an annual basis in the month before.

Alongside the manufacturing production figures, the UK's industrial production numbers are also due. Estimates show that industrial production in the UK remained unchanged in May, following a 0.1% increase in April.

On an annual basis, industrial production is expected to expand at a slower pace of 2.7%. In April, industrial production in the UK expanded at a pace of 2.9%.

The decline in both industrial and manufacturing output figures suggests a mixed outcome and falls in line with the general weakness in the economy.

An unexpected upside surprise on both the numbers could however boost the sentiment in the British pound. However, with input costs rising, as evidenced by the various PMI figures, we expect to see a subdued print on both the indicators.

Based on the above, today's trading signal is GBPJPY, the currency pair has been attempting to recover from last week's declines. However, this retracement is seen pushing the currency pair back to the previously held support level that could now turn to resistance.

I would consider daily PUT options at 147.80 for a 21:00 GMT expiry time. I expect GBPJPY to test the resistance level and close lower on the day.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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