USD/JPY the consolidation saga continues

• USD/JPY is trading just under flat in a lacklustre session on Thursday.
• There seems to be no reaction to the risk-aversion theme in the markets.

USD/JPY 1-hour

It is sideways city in USD/JPY town as the market once again fails to break out of the recent range between 107.63 and 107.00. It is a very interesting time as the JPY normally gets stronger during risk-off environments but at the moment the safe-havens all seem to be stuck. 

Looking at the technicals, a break in either direction could be very important and as the market is refusing to move lower during risk-off phases it will probably move higher. This period looks like a dead cat bounce on the daily chart from when the market fell from 109.69 to 106.57 in a three day crash on 8th June. 

The indicators are obviously flat. The MACD is a good one to watch when there are sideways market conditions as a good break can provide some good signals. Like with Bollinger bands when there is a period of low volatility the thinner the bands the bigger the snap. In the case of MACD the closer the signal lines and the thinner the histogram bars the bigger the potential breakout. 

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