EUR/JPY: 3 weeks in a small range

EUR/JPY is rising on Thursday after losing ground during the previous three trading days. Despite the latest moves, the pair continues to move sideway,  consolidating in a modest range.

Today it rose from 113.15 and peaked at the beginning of the US session at 113.58 setting a new daily high (coincides with yesterday's high). Then it pulled back modestly and it was trading at 113.40, up 0.23% for the day.

Low volatility

Since August 3 volatility in the EUR/JPY has been trending lower. Price has moved since then in a range of less than 200 pips, moving around 113.00, an “equilibrium price”. Despite last week rally of EUR/JPY and the decline of the previous week of the USD/JPY, EUR/JPY held in the range.

The upside has been capped below 114.00, that is the key upper limit of the range, while to the downside, the 112.50 is the relevant short-term support.