After a sharp bearish break the USD/JPY has regained its footing and settled into a defined range making it attractive for scalping strategies. The threat of BoJ intervention could also temper volatility as traders may refrain from becoming too aggressive.
[B]Key Technical Levels[/B]
The 90.50 price level has served as a solid support level and is now providing resistance following the break below. We could see USD/JPY price action hover near the key level as traders wait for clearer signs on future trends. The pair appears that it may settle into a range between 89.25 and 90.50 creating an environment for profit potential for high frequency traders.
We could see USD/JPY price action hover near the key level as traders wait for clearer signs on future trends. The pair appears that it may settle into a range between 89.25 and 90.50 creating an environment for profit potential for high frequency traders.
[B]Quantitative Metrics[/B]
The USD/JPY price action has been confined in between the 20-Day SMA and lower Bollinger band outside of a brief breakout on the 28th which has kept the bands width steady. This will make it attractive for high frequency traders as the risk of a large breakout is minimized. A rising ATR and an implied volatility in the middle of the pack are concerning as we have started to see increased volatility for the pair.
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