High to low trading range of 17 pips
The EURUSD has a trading range of 30 pips (well breaking as I talk). That is small for this point of the trading day. However, it is being trumped by the range in the USDJPY which is currently only a 17 pips. That compares to an average trading range over the last 22 trading days of 50 pips. Nontrending.
Non-trending does transition to trending eventually. So look for a break and run.
Looking at the hourly chart, like the EURUSD, the high price today called the high price from yesterday at 106.10. The low price today has come in at 105.918.
A break below would target the 105.858 followed by the swing high from September 30 at 105.80. Recall that the USDJPY traded in a non-trending range over the prior 10 days before yesterday's breakout above the 105.80 level. If the buyers are to remain in control, staying above that level is key. A move below, and the pair returns to the non-trending range and will look toward the 100 hour moving average at 105.708 (blue line).
What is stalling the upside?
Looking at the daily chart, the high price today scraped against the downward sloping trendline connecting highs from July and August at the 106.10 level. A move above that trend line would next target the 38.2% retracement at 106.229. Above that is the falling 100 day moving average at 106.507. The last time the price traded above that moving average was back on July 1.
