The USDJPY has started to consolidate after failing at the 20-Day SMA which has served as a staunch resistance level for the past few months. The defined level of support and resistance the pair has established provides opportunities for high frequency traders to enter and exit trades.
Key Technical Levels
The USD/JPY has send price action compress after failing twice to break above resistance. We may see traders wait for the upcoming event risk tomorrow before determining longer-term direction. Meanwhile, the pair continues to trade between the 20-Day SMA and the lower Bollinger band which it has done since mid-August. This will give traders key levels to watch and target for entering and exiting positions.
Quantitative Metrics
The USDJPY continues to be wedged between the 20-Day SMA and the lower Bollinger band. This has kept the ATR level and the Bollinger Band width steady which isn’t completely attractive for scalping strategies but isn’t a red flag for future volatility.
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