Range narrow. Market unsure...for now
The USDJPY is coiling in a narrow trading range today. The pair is trading between the 100 and 200 hour MAs (blue and green lines in the chart below) . The 100 hour moving average currently comes in at 124.028. While the 200 moving average currently comes in at 123.826. In addition, there are narrowing topside and lower trend lines. They come in at 124.10 and 123.83 respectively. The 50% midpoint of the 4-day consolidating range, comes in at 124.042. The trading range for the day is only 31 pips. The average over the last 22 trading days (about a months worth of trading) is 82 pips.
Something has to give at some point. There should be a trend like extension away from the narrowing trading range. So keep an eye out for a break and run. On the topside watch that 100 hour MA at 124.028 and the 50% at 124.04. Get above and look for momentum.
On the downside, the closest support target to get below is 123.916. Then the 200 hour MA at 123.826.
Currently, the ambivalence is suggesting "the market" simply does not know (or does not care). However, it (i.e. "the market") will make up it's mind, and it is hard for the market to mask it's decision and bias. The price action as it relates to the technicals outlined above will show the way. So keep your eyes on the levels and look for the momentum on the breaks. They tend to show us the way.
