The USD/JPY has settled into a tight range after failing to break below the 90.00 price level. The solid band of support will help limit risks for traders using scalping strategies. Additionally, a new political regime has brought uncertainty over future interest rate policy and Yen direction which has limited bets for the traditionally low yielder.
[B][U]Key Technical Levels[/U][/B]
The psychological level of 90.00 has provided staunch support for the USD/JPY which could limit risks for high frequency traders. A solid floor will also provide an entry point for long positions However, traders must be aware that a break below such a level could lead to an extended move lower. The pair has found itself in a tight range between 90.00 and 91.75 which has narrowed in recent trading with 91.00 serving as the support level creating an ideal scalping environment.
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[B]Key Support/Resistant Levels to Watch
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[B][U]Quantitative Metrics[/U][/B]
The ATR for the USD/JPY has steadily declined and represent the second lowest percentage of the spot price at 0.99% of the majors listed below. A Bollinger band width of 528 pips and an implied volatility 13.65 are concerning and increase the risks of a breakout.
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[B]Volatility / Activity Indicators
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[B][Click For Additional Info On Scalping Strategies](http://www.dailyfx.com/story/special_report/special_reports/Scalping_Trade_Strategies_1252679113408.html)[/B]
[I]To discuss this report contact John Rivera, Currency Analyst: <[email protected]>[/I][B][/B]