54 pips to 61 pips for the trading range for the week. The trading range for the day is only 22 pips
Yesterday I commented on the narrow trading range for the USDJPY over the last 5-6 trading days. The range was only 54 pips. The price did extend that range but only to 61 pips. Big deal.
The chart above shows the trading range for a weekly bar going back to August 2017. The current trading range of 61 pips was equal to the February low. Going back to August 2017 have only been 5 trading weeks where the ranges were less than 61 pips. That's not a lot of weeks. Do we get an extension before the end of the week?
Drilling down to the hourly chart, the ups and downs today make it seem difficult to see any sort of momentum run. The low price today reached down to 107.175 the high price has extended up to 107.29. That is only 22 pips on the day.
Technically, the price is currently below the 100 and 200 hour moving averages (blue and green lines in the chart below). Bearish. The price also tried to move above the broken 38.2% retracement at 107.359 only to fail. Bearish. The price is currently trading around the lows from Monday and Tuesday at the 107.239 – 25 area. Stay below would be more bearish.
The next target comes in at 107.112. That is the 50% retracement of the move up from the June 23 low. Get below that level would not only extend the trading range but could lead to further downside probing with the 107.00 level followed by the 61.8% retracement at 106.866 as potential targets going forward. It's not all that much but it's a step in the non-trend direction.
Spoiling that bearish party would be a move back above the 107.25 level and then the 38.2% retracement at 107.359. Doing so and were back in the meat of the non-trending range.
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