The USD/JPY pair had a fairly quiet day on Tuesday as the range continues to hold in this market. The market closed near the 77 mark, which has been the epicenter of this very tight range recently. The 77.50 area is the top, and the 76.00 level is the bottom.
With the Bank of Japan threatening possible intervention in the marketplace if the Yen appreciates too quickly, it is going to be hard to sell this pair for any serious length of time. The range has held, and has paid traders quite handsomely if they played it. The range continues to be a guideline for scalpers to clean up in this environment. The range should continue to be abided by, with smaller positions to the downside, and larger ones to the upside as the threat of intervention is still out there.
Written by FX Empire