FxWirePro: Buy EUR/JPY binary calls for targets at 136.4470

The final services the euro area are also released at 56.1 quite below than forecasted numbers at 58. But this does not seem to impact much adversely on Euro as the PMIs for France, Germany are all expected to be unchanged from their preliminary prints which all point to a continuation of the 0.4% Q1 rise in euro area activity.

Euro area retail sales for May are also published this morning. Volumes traded rose by 0.7% MoM in April, which was the fastest monthly pace since February last year. We are expecting a softening to 0.3% MoM which would still leave sales on track for a Q2 pickup compared to Q1 when they fell by an average of 0.1% each month.

The euro slipped lower against the major currencies on yesterday and it would be expected to be weaker today as well, EUR/JPY was dropped to 136.5450 levels yesterday.

We believe it is worth speculating in ATM binary 0.50 delta calls for targets upto 136.70 levels and even surpassing 136.80 levels as we see no positive reasons to cushion euro so far.