FXstreet.com (London) - Japanese Yen continues to trade rangebound midway through the session. We reported earlier on a soft breakout from the established range in the US session, however since then the pair has drifted back into range without running. The pair is likely to continue trading in the narrow range, as it did in US, of 88.57-88.19. The pair currently quotes at 88.41/2.
Pair remained rangebound in earlier trading despite extended dollar rallies against other major trading partners. This is largely due to the Yen's shared position as a safehaven currency.
Trading neutral now gives little bais for breakout in either direction, however technicals suggest possibilty for points of breakout on the upside and downside, according to Valeria Bednarik, collaborator at FXStreet.com: .Pair remains under the 38.2% retracement of the daily rally 84.80/90.76, consolidating in a tight range since late European session, turning hourly indicators flat with no clear bias for next hours. Still 20 SMA above current price and with a nice bearish slope, plus 4 hours charts indicators, support more bearish movements in the pair, likely to began if breaks under past Tuesday low of 88.16. 87.70, 50% of the same rally is next support in line.