Pair mired in a 50-60 pip range and looking for a break
The USDJPY has bounced off the low from yesterday at 105.044. The low today reached 105.06. The current price is trading at 105.20 after extending to 105.384 after the USD CPI data.
On the topside today, the high reached 105.578 in the Asian session. That was equal to the early European session high from yesterday's trading at 105.578. The 105.51 was lows from August 6 and August 7 making the 105.51-578 area a topside resistance area.
Although in that 105.04 to 105.58 trading range, on breaks there are fairly close additional levels to get to and through.
On the downside, the 104.87 is the 2019 low from the Flash Crash on January 3rd. That level will need to be broken (and stay broken) to attract more selling.
On the topside, a trend line and the 100 hour MA at 105.70 level will need to be to broken (and stay broken) to attract more buying.
So, yes..... the pair is mired in a 105.04 to 105.58 range (54 pips). The price trades nearer the lows, but there remains other levels of importance in play as traders try and figure out the next move.
PS Of note is the sharp fall in yields yesterday in the US helped the USDJPY move lower on the day, but it wasn't a run away decline. Today, yields in the US are mixed. Stocks are expected to open lower (modestly - S&P down 10 points now). The market seems tired and continues to take a breather (with a more negative bias).
