The USDJPY has started to consolidate after failing at the 20-Day SMA which has served as a staunch resistance level for the past few months. The defined level of support and resistance the pair has established provides opportunities for high frequency traders to enter and exit trades.
[B]Key Technical Levels[/B]
The USD/JPY has send price action compress after failing twice to break above resistance. We may see traders wait for the upcoming event risk tomorrow before determining longer-term direction. Meanwhile, the pair continues to trade between the 20-Day SMA and the lower Bollinger band which it has done since mid-August. This will give traders key levels to watch and target for entering and exiting positions.
[B]Quantitative Metrics[/B]
The USDJPY continues to be wedged between the 20-Day SMA and the lower Bollinger band. This has kept the ATR level and the Bollinger Band width steady which isn’t completely attractive for scalping strategies but isn’t a red flag for future volatility.
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