Forex: USD/JPY remains trapped in a 20-pip range

FXstreet.com (Córdoba) - The dollar-yen cross has been oscillating in a narrow range on Tuesday, lacking momentum either side of the board in the absence of major events.

USDJPY was unable to overcome the 100-hour SMA at the 78.40 zone at the beginning of the European session and steadily slid to a low of 78.19 before finding support. The pair is currently trading back at mid-range around 78.30 where it is also virtually unchanged since opening.

From a technical view, "The USDJPY consolidates in between 100 and 200 SMA's, holding a pretty neutral stance in the hourly chart, with indicators flat right below their midlines", says Valeria Bednarik chief analyst at FXstreet.com. "The overall market sentiment continues to favor the downside although dollar demand at the time being is limiting slides in the pair".

"77.90 is the key support to follow for the upcoming sessions, as once below, a retest of 77.10/30 area seems likely", Bednarik adds.