USD/JPY Price Analysis: The pair is moving into a very congested price area

USD/JPY is trading just above flat on Thursday.
Between 105 and 106 there are multiple resistance zones.

Rajan Dhall, MSTA FX Daily

USD/JPY daily chart

It's fair to say that USD/JPY has not been the most interesting currency pair over the last couple of months. The pair sprung into life when the Yen strength kicked in on 14th September. The previous wave low was broken and the price hit a low of 104.00 but then the pair caught a strong bid with some analysts suggesting BoJ intervention (unconfirmed).

Since hitting the lows the price has retraced back to the mean value area of the previous consolidation (distribution). There are two key resistance levels to look out for now. First is the orange line at the current price point and the next one is right in the middle of the consolidation at 106.09. The latter is the stronger zone and it will be interesting to see if the bulls have enough power to get the price there.

The indicators are still bearish. The MACD histogram is still red and the signal lines remain under the mid-zone. The Relative Strength Index has moved away from the oversold area but is still pretty low under the 50 area.

This market is still making lower highs and lower lows so the pair will need some strength to break this trend from here. If the red level on the downside does get broken then it is back to the normal for the bears. For now, traders must keep a close eye on these resistance zones to see if there is a rejection.

Additional levels

USD/JPY

Overview
Today last price	105.42
Today Daily Change	0.04
Today Daily Change %	0.04
Today daily open	105.38

Trends
Daily SMA20	105.68
Daily SMA50	105.94
Daily SMA100	106.7
Daily SMA200	107.68

Levels
Previous Daily High	105.5
Previous Daily Low	104.88
Previous Weekly High	106.17
Previous Weekly Low	104.27
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	105.26
Daily Fibonacci 61.8%	105.12
Daily Pivot Point S1	105.01
Daily Pivot Point S2	104.64
Daily Pivot Point S3	104.39
Daily Pivot Point R1	105.63
Daily Pivot Point R2	105.87
Daily Pivot Point R3	106.25

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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