According to the jungle drums (and reader verik, who knows his onions) there are some reportedly large options going off around 31st May/1st June. Added with possible month end flows means that the range is being kept fairly tight.
I mentioned yesterday that the rally to 102.50 didn’t look convincing and we’ve now failed there five times since falling from the 103’s.
We’re heading back towards the rising support line which is at 101.20. We also have the 100 H4ma at 101.47 just behind support at 101.50.
It would seem that the pair is in a tussle between the dollar trade and the yen trade. US 10’s & JGB’s are up again, DXY is down slightly, the Nikkei is still fairly volatile. It’s all adding to keeping the pair in it’s range without much emphasis on direction.
Playing the edges is the best strategy for short term trading until the picture becomes clearer.