For the USDJPY…still looking for the next break

Technical Analysis

6 days in a 51 pip trading range

The week in the USDJPY has seen a high at 108.748 on Thursday. That took the price above a ceiling at 108.717. That break failed.  

The pair had a low at 108.243. That was a break of the low from Monday at 108.276. That break also failed after a few pips.

The low to high trading range for the last 6 trading days is 51 pips. Today the range is a whooping 20 pips.  The average over the last month is 54 pips.  UGH.

We currently trade above and below the 100 and 200 hour MAs at 108.566-594.  The pair is also above an intermediate swing area at 108.44-471.  I guess that might give the pair a tilt to the topside.   Yields have move a bit hgher and stocks are now in the black. That tends to support the USDJPY.   Of course, the stocks market is well off the lows so it may lose some steam, but so far, so good for equities as they move higher from the lower opening. 

The “market” is not exactly on fire with enthusiasm as the clock ticks down for the week.  We may have to wait until next week to get the shove.  The FOMC meets on October 30 (a cut is expected). The US employment report willl be released on Friday with Non farm payroll estimated at 90K after 136K last month.  

ForexLive

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