USD/JPY Technical Analysis October 14, 2011

The USD/JPY pair fell from the higher end of its consolidation on Thursday. The pair looks like it is ready to continue the range bound trading, and this latest moves solidifies that appearance. The pair is being held up by the threat of intervention by the Bank of Japan, as the central bank doesn’t want a Yen that appreciates too quickly. The actions have mainly been of the “jawboning” type at the moment, but as recent as August this central bank had intervened. Because of this we don’t sell for any real length of time, and prefer buying at the bottom of the range, given a choice. Buying at 76.25 has worked out quite well for a while, as long as you are willing to take profit at 77 or so. Knowing this, we are going to continue to scalp this market by doing just that.