The CADJPY has settled into a defined range with several intermittent price swings which makes it an ideal pair for implementing scalping strategies. Several technical levels are converging at current price levels, which are having a gravitating pull on price action limiting risks for potential breakouts.
[B]Key Technical Levels[/B]
After failing to break above Fibo resistance at 85.90 the CADJPY has been held up by the 20 and 100-Day SMA’s and has carved out a tight 150 pip range. There is also Fibo support below at 84.45 and 83.07 of the 78.55-90.34 advance. The 61.8% retracement has held firm following two prior tests making it a level to watch. If it continues to hold then we may see a longer –term range develop between 83.00 and 87.00.
[B]Quantitative Metrics [/B]
A sharp decline in the ATR to 1.2740 for the CADJPY is indicative of the recent consolidation that we have seen. However, the pair’s range is still at the higher end of the pairs listed below. A narrowing Bollinger band also provides evidence of the tight range that the pair finds itself in and another positive sign for scalpers. However, beware that extreme tightness can signal a breakout and watch for a move above or below the current range for a signal.
Click For Additional Info On Scalping Strategies
[I]To discuss this report contact John Rivera, Currency Analyst: <[email protected]>[/I]