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- Feb, 09 Solid S/R Levels Makes USD/CAD Scalping Target
- Feb, 08 NZD/USD Approach Of Solid Support Offers Scalping Opportunity
- Feb, 05 A Channel Bound AUD/NZD presents Scalping Opportunity
- Feb, 04 A Range Pound EUR/GBP presents Scalping Opportunity
- Feb, 03 EUR/USD Presents Scalping Opportunity Ahead Of ECB Decision
- Feb, 02 GBP/USD Presents Scalping Opportunity Ahead Of BoE Decision
- Feb, 01 AUD/USD Presents Scalping Opportunity Ahead Of RBA Decision
- Jan, 29 A Range Bound NZD/USD Provides Scalping Opportunity
- Jan, 28 AUD/USD Becoming Scalping Target As Range Develops.
- Jan, 27 EUR/USD Ideal Scalping Target Ahead of Major Event Risk
- Jan, 26 USD/JPY Becomes Scalping Target Ahead of FOMC Meeting
- Jan, 25 A Range Bound USD/CHF Offers Scalping Opportunity
- Jan, 22 EUR/USD Consolidation Offers Scalping Opportunity
- Jan, 21 USD/CAD Offers Scalping Opportunity as Resistance Creates Short-term Range
- Jan, 20 A Range-Bound USD/JPY Creates Ideal Scalping Environment
- Jan, 19 USD/CAD Becomes Scalping Target With Solid S/R Levels
- Jan, 15 USD/JPY Becomes Scalping Target With Solid S/R Levels
- Jan, 14 NZD/USD Consolidation Creates Ideal Scalping Environment
- Jan, 13 EUR/USD Is Ideal Scalping Target Ahead Of ECB Decision
- Jan, 12 GBP/USD May Become Scalping Target If Wedge Formation Develops
The EUR/JPY has been under pressure as risk appetite has faded, sparking a flight to safety and broader yen support. The pair has fallen to major support levels which may slow its decline and offer a period of consolidation. The upcoming Thanksgiving Day holiday could lead to a week of quiet equity markets which may enhance the pair’s attractiveness as a scalping target.
Key Technical Levels
The EURJPYY has found support at the major support level of the 200-Day SMA which the pair has traded above since 5/21/09. Therefore, it may take a significant catalyst to push the pair below, limiting downside risks. The technical level is currently at 132.08 which is also a level that has held for the past month increasing the likelihood that the last of least resistance is higher. However, prevailing risk aversion is weighing on the pair and the potential stalemate between current momentum and the imposing barriers may create an opportunity to use scalping techniques.
Quantitative Metrics
The EUR/JPY’s declining ATR makes it attractive for scalpers but a Bollinger band width of 602 pips demonstrates that the pair is susceptible to volatility. A daily range of 166 pips remains one of the highest of the majors but its descent speaks of recent consolidation. Today we have seen the pair trade in a 116 pip range which still leaves the possibility of more movement but the recent retrace lessons the chances of a move below the intra-day low of 131.78.
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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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