USD/JPY – Stuck in a 80-pip range

USD/JPY has been restricted to a 80-pip range of 101.40 to 102.20 during last few hours amid risk-off in the markets and threat of Bank of Japan (BOJ) intervention.

Trades below hourly 50-MA

At the time of writing, the pair was trading just below the hourly 50-MA located at 102.03 levels. The political tussle in the UK and Europe on large and the resulting risk aversion in the global equity markets has capped the upside in the pair around 102.20 levels.

Meanwhile speculation that Bank of Japan may intervene to stall the rally in Yen is limiting the downside around 101.40 levels. Broader market sentiment remains the main driven of the pair. Later in the day, US Q1 GDP and consumer confidence number may influence the pair as well.

USD/JPY Technical Levels

A break above the immediate hurdle at 102.03 (hourly 50-MA) needs to be followed by an acceptance above 102.20 (upper end of the range), in which case 103.48 (hourly 100-MA) stands exposed. On the downside, 101.40 (lower end of the range) if breached would open doors for a slide to 101.00 and 100.71 (50% of 2011 low-2015 high).