EUR/JPY Consolidation Presents Scalping Opportunity
Key Technical Levels
Trend line resistance (2/3, 2/22 highs) is capping the pair’s gains at the moment as it continue to trade sideways. The psychological level of 124.00 is also helping limit upside potential giving scalpers a solid target level. Meanwhile, the 20-Day SMA below at 122.63 is a possible support level and could limit downside risks.
The EUR/JPY has seen its Bollinger band width continue to narrow as the pair has been relatively range bound since the beginning of February. However, at 522 pips it is still one of the widest amongst the most active pairs as the pair has been in a longer-term bearish trend. A declining ATR is an attractive characteristic for a scalping target but with the daily range at 164 pips it remains one of the largest and should still be a concern for traders looking for a predictable environment.
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