Forex Trading Signals by Magister Pips, 2012/02/01
1000 US ISM Manufacturing (54.5 expected, 53.9 prior, 53.0 to 56.0 range)
Top Analysts: 1st 55.0 2nd 53.6 3rd 55.0 4th 55.0 5th 54.5
Estimate Range Spread: 3.0 vs jan12 6.0, Dec11 2.8, nov11 4.5
Affliated Reports:
US ISM Prices Paid (50.0 expected, 47.5 prior, 48.0 to 53.0 range)
Just a small deviation on this last month of +0.4, although the CADJPY did rally slowly over
the next half hour about 25 pips. The +0.9 deviation in December also caused a slow 20-pip
rally on CADJPy over the next half hour. In November a -1.2 just blipped the CADJPy down
20 pips but it quickly reversed and headed up 50 pips in the next 35 minutes. In all cases
the USDJPY did not do much at all. We have to go to September for a much better +2.1 dev.
and here we see a nice rally. It was expected at 48.5 which is below the 50 level, so it was
good news that it was able to print above this and keep in the expansion zone, however only
slightly. USDJPY spiked 17 pip pulled back after 3 minutes but then continued higher for a
35 pip move over a half hour. CADJPY had a nicer spike over nearly 40 pips but did not have
the same follow thru as the USDJPY did over the next half hour, and just went choppy sidewise.
So perhaps we could trade a +/-2.1 deviation but it seems that this reaction was mostly due to
the fact that the print managed to stay above 50. So widen this out a bit, about a +/-3.0
should be ok. The EMini is very good to trade on this as is most major stock indices, the
CADJPY should mirror these moves.
if 57.5 or higher then buy USDJPY for a potential 20-40 pip move
if 51.5 or lower then sell USDJPY for a potential 20-40 pip move
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