USD/JPY Technical Analysis October 6, 2011

USD/JPY continues to bounce around in a very tight range as traders can only scalp it at this point. Wednesday was no different, and we still continue to think that buying this pair at the 76 handle is the way to go overall. We don’t sell – the Bank of Japan has recently intervened in this pair, and will probably do it again if the Yen appreciates too quickly. Because of the pressure to the downside – we are content to buy this pair at 76 or so, and close out at a 40 to 50 pip gain.

Written by FX Empire