Strategy in Play:
The USD/JPY is bouncing back up from its support zone on a 30 minute time frame. This support zone was given in our analysis on the 21st of October. The volatility for the pair is high, as the price has pierced the Bollinger band at the support zone. The piercing of the Bollinger band does have a significant importance when this takes place at a resistance/support zone, because this has an ability to stop the upward/downward move or reverse the trend.
However, the price is trading below the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which means that the bears are in control. Moreover, the pair is also trading well below the downward trend line which further confirms that the above argument.
Nevertheless, , the RSI is trading in an oversold zone which means that the bias could soon change towards the upside.