Nearly 6 days with the price stuck in 54 pip trading range
The EURUSD is stuck in a 33 pip trading range today (see post here). The USDJPY has a 54 pip trading range BUT it for the last 5+ trading days (working on the 6th day). Now that is now trending.
The high of the range comes in at 107.78. The low comes in at 107.24. In between is the converging 100 and 200 hour MAs at 107.50-52. Non-trending dyanamics in play.
Non trending can beget non trending. That is sellers can lean against the high like they did yesterday and buyers can lean against the low like they did yesterday as well. They may also lead to moves around technical levels in between like the 100 and 200 hour MA. There have been swings away from the 100 hour MA over the last few days(follow the blue line and see the swings around that MA line).
Non trending will also lead to a break at some point too (like a spring higher or lower). Let's face it.... the non trend is because the "market" does not have a firm conviction one way or the other. At some point, it will grab onto something that leads to something more than 54 pips.
As a result, respect the range. Expect to see reasons to sell or buy at the extremes, but look for those breaks and runs too. We ain't going to stay on lock down forever.
PS the 100 day MA at 107.745 helped to stall the rally yesterday. Keep that level in mind on the upside. The price has stayed below the 100 day MA since the failed break on July 1. On the downside, getting below the 50% of the range since June 23 comes in at 107.112 and would be a greater tilt to the downside technically.
