USD/JPY Price Analysis: The pair has just printed below an important support zone

USD/JPY has dipped below 106.00 to trade 0.83% lower on Friday.
The recent consolidation has been very strong and there has finally been a break.

Rajan Dhall, MSTA FX Daily

USD/JPY daily chart

USD/JPY has been a very boring currency pair for a while and it seems to have livened up on Friday afternoon. Interesting that this move comes when liquidity could be lower due to a Japanese holiday and it being a Friday afternoon. Today's candle seems to be double the size of any other within the last month or so.

Looking closer at the chart, the 106 area was not only a psychological support but also a key technical one. The sequence of lower lows and lower highs is now continuing and the next support on the way down stands at 105. The price still has not closed below the 106 area but we will have to wait till the end of the US session to see if that is the case.

The Relative Strength Index is now heading to the oversold zone at the 30 area. The MACD is also bearish with the signal lines and the histogram under the zero level. It is pretty amazing that the pair has held up for this long. As a safe haven JPY could have strengthened much sooner. The fact that the US bourses have fallen toward the end of the week could have been the tipping point.

Additional levels

USD/JPY

Overview
Today last price	105.97
Today Daily Change	-0.90
Today Daily Change %	-0.84
Today daily open	106.87

Trends
Daily SMA20	107.26
Daily SMA50	107.47
Daily SMA100	107.54
Daily SMA200	108.35

Levels
Previous Daily High	107.23
Previous Daily Low	106.71
Previous Weekly High	107.44
Previous Weekly Low	106.67
Previous Monthly High	109.85
Previous Monthly Low	106.08
Daily Fibonacci 38.2%	106.91
Daily Fibonacci 61.8%	107.03
Daily Pivot Point S1	106.64
Daily Pivot Point S2	106.42
Daily Pivot Point S3	106.13
Daily Pivot Point R1	107.16
Daily Pivot Point R2	107.45
Daily Pivot Point R3	107.68

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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