Key Technical Levels
The USD/JPY may be headed for a period of consolidation as its current rising trendline is on the verge of testing resistance at the 9/21 high of 92.52. The converging technical factors could lead to a period of consolidation especially with fundamental influences entering a stalemate.
Quantitative Metrics
A declining ATR and the second lowest of the pairs listed below at 96 pips add to the USDJPY’s attractiveness for scalpers. The pair has seen very little intra-day movement decreasing the risks for short-term traders evidenced by volatility only accounting for 1.05% of the spot price. However, a wide Bollinger band width is a concern as we have seen prolonged trends of one way price action.
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To discuss this report or be added to the email list, contact John Rivera, Currency Analyst: jrivera@fxcm.com
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