The USDJPY is in the midst of a tiny 17 pip trading range. That is well below the 56 pip 22-day average range.   The good news is buyers and sellers are not losing much.  The bad news is they are not making much either.

Technically, the high has a ceiling at the 200 day MA. Yesterday, that MA (see green line overlay on the hourly chart at 111.45) stalled the rally. The high in the Asian session today, also stalled at that MA level. The London high has only gotten to 111.416.   The lows today have come in at 111.28 to 111.287 (four separate lows – see red circles).

Something has to give. Look for a break.  Which way?  Honestly….I have no clue. It would just be a guess given the market price action.   The “market” doesn’t know. I don’t know either.

The US yields are lower to day after the sharp run higher yesterday but only by about 2 bps in the 10 year (that is a slight negative usually).   US stocks are modestly changed with the Dow down and the S&P and Nasdaq holding onto small gains (neutral.  The USDJPY can move higher with runaway stocks to the upside and lower on runaway stocks to the downside, but that is not happening so far).

So look for the break and some sort of extension of the 17 pip trading range at some point.