A Range Bound USD/JPY Presents Scalping Opportunity
Key Technical Levels
The 50.0% Fibo of 101.46-84.86 is providing resistance at 93.16 which may limit upside risks and lead to a continuation of the current range. The end of the bullish rally has seen USD/JPY settled between 92.50 and 93.00 providing traders with solid entry and exit levels. However, the potential of the pair as a target may be limited with the pending event risk and those with a higher risk tolerance should position themselves to take advantage of such a move.
The USD/JPY has started to see its Bollinger band width widen following the pair’s break from its tight range, which is a major red flag for scalpers. However, most of the volatility was in one day which has seen its ATR resume its downward trend. Daily volatility stands at 85 pips which is among the lowest of the most traded pairs.
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