Friday, August 27, 2010

8/27 Forex

  • Euro rising sharply against the yen but the signal remains in bear phase (EUR/JPY).
  • The dollar also rises (USD/JPY).
  • Bernanke speech inspired no new signals against the currency pairs I follow.

ppspps openupper pivotlower pivot
EUR/USD US$1.55 US$1.32 aug11 US$1.34 US$1.25
USD/JPY¥84.96 ¥85.15 aug24 ¥88.41 ¥83.96
GBP/USD US$1.55 US$1.59 aug11 US$1.60 US$1.51
EUR/JPY ¥108.12 ¥113.50 aug10 ¥115.86 ¥108.62
USD/CAD C$1.06 C$1.04 aug20 C$1.06 C$1.01
USD/MXN M$13.02 M$12.70 aug20 M$13.00 M$12.24

EUR/JPY has risen 2.6% in three days. The pair moved to bear phase on Aug. 10 and from that point saw a 7.2% drop.

The Japanese political scene has been in a bit of turmoil as Prime Minister Kan faces a challenge from within his own party. The prime minister today promised strong action against a strong yen. Japanese policy makers have long preferred a weak yen to make exports more attractive.

The USD/JPY pair has risen 1.8% in three days under a four-day-old bear signal.

Fed Chairman Ben Bernanke, in a major speech this morning, made a vow of his own, to use the Fed's powers to stimulate economic recovery. But the impact on currencies was slight.

The analysis uses the daily Person's Proprietary Signal, developed by John Person, and the monthly Person's Pivot, which he also developed.

These are black box signals -- the "proprietary" means that Mr. Person knows how they work under the hood, and I don't. But they have shown a fair degree of success in identifying good entry and exit points, and I find them useful.

On the glance, "pps open" means the price at the start of trading in the United States on the day the signal appeared.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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