A short-term rising trend line has provided a target for traders to enter and exit positions as price action has bounced from the level twice. There is still a considerable amount of volatility in the par for a high frequency strategy but that could change as the election approaches. The pair sitting in a broader range between 1.4150-1.4500 may limit the potential for any extended moves and provides solid entry and exit levels.
The GBP/JPY has seen its Bollinger band width narrow as the pair has settled into an established range. However, a spread of 366 pips still puts it at the top of the most traded pairs. Broader risks trends have led to a rise in the pair’s intra-day volatility which at 196 pips is a major red flag for high frequency traders. Additionally, a one week implied volatility of 15.48 is a major concern and limits the potential for the pair to be a scalping target.
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