USD/JPY Hits Four and a Half Year Highs as Bernanke Hints of "Taper"
Federal Reserve Chairman Ben Bernanke took to the hill today to respond to questions in front of a congressional testimony. His prepared statement was quite dovish. On the labor market specifically, he said:
"Despite this improvement, the job market remains weak overall: The unemployment rate is still well above its longer- run normal level, rates of long-term unemployment are historically high, and the labor force participation rate has continued to move down."
However, during the Q&A portion, Chairman Bernanke said that the pace of QE3 could be slowed over the course of the "next few meetings", sending equity markets into a tailspin, and the US Dollar surging across the board. The USDOLLAR rallied from a low of 10759 to as high as 10852, as the USD/JPY hit a four and a half year high above 103.60.
The Tidal Shift Strategy has since given a signal to buy USD/JPY. The system recommends entering this trade at any price between 103.272 and 103.748. The 14-period Average True Range on a daily chart is 0.19, so the trailing stop loss has been set at 102.559.
Tidal Shift is a trend trading strategy that aims to catch shifts in trend using trader sentiment as an indicator. The strategy looks to buy when the Speculative Sentiment Index reaches its lowest value for the past 145 trading hours, and looks to short when it reaches its highest value for the past 145 trading hours. The system is available for automation for all FXCM Trading Station accounts via the Mirror Trader platform.
Federal Reserve Chairman Ben Bernanke took to the hill today to respond to questions in front of a congressional testimony. His prepared statement was quite dovish. On the labor market specifically, he said:
"Despite this improvement, the job market remains weak overall: The unemployment rate is still well above its longer- run normal level, rates of long-term unemployment are historically high, and the labor force participation rate has continued to move down."
However, during the Q&A portion, Chairman Bernanke said that the pace of QE3 could be slowed over the course of the "next few meetings", sending equity markets into a tailspin, and the US Dollar surging across the board. The USDOLLAR rallied from a low of 10759 to as high as 10852, as the USD/JPY hit a four and a half year high above 103.60.
http://media.dailyfx.com/illustratio...0000_i1027.png
The Tidal Shift Strategy has since given a signal to buy USD/JPY. The system recommends entering this trade at any price between 103.272 and 103.748. The 14-period Average True Range on a daily chart is 0.19, so the trailing stop loss has been set at 102.559.
http://img341.imageshack.us/img341/1...gnals2013m.png
Tidal Shift is a trend trading strategy that aims to catch shifts in trend using trader sentiment as an indicator. The strategy looks to buy when the Speculative Sentiment Index reaches its lowest value for the past 145 trading hours, and looks to short when it reaches its highest value for the past 145 trading hours. The system is available for automation for all FXCM Trading Station accounts via the Mirror Trader platform.