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.

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.