Key Technical Levels
The 20-Day SMA currently at 89.92 has held as support for the past two weeks limiting downside risks. We are also seeing the 50 and 100-Day SMA’s converge which have also helped anchor the pair. The current range of 89.90-90.70 has provided solid entry and exit levels for scalpers to target. Although price action has been condensed, there has been sufficient volatility to provide several opportunities to generate profits.
Quantitative Metrics
The Bollinger band width for the USDJPY has steadily narrowed as the pair remains range bound and at 274 pips is the lowest amongst the most active pairs. An extended period of condensed price action has shrunk the ATR to 78 pips making it an attractive scalping target. A one week implied volatility of 9.96 provides confidence that price action will remain subdues going forward.
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