USD/JPY Technical Analysis October 20, 2011

USD/JPY continues to sit in a tight range, and barely budged during the volatile Wednesday trading session. The market is currently being manipulated by the Bank of Japan as they want a lower valued Yen. The range has been between 76.25 and 77.50, and should continue to be in that area for the foreseeable future, as there is no real reason to sell the Yen, but no real reason to work against a central bank either.

We like selling close to the top of the range in the 77.50 area, and of course buying when the market dips down to the 76.25 level. The trading range has seemed to be oblivious to the wild swing in other markets, and as a result – we expect more quiet trading ahead.