USD/JPY to test 106.60 on a break below 106.95

USD/JPY is neutral-to-bearish according to intraday charts as trades lifeless around the 107.00 level for a fifth consecutive week. The pair could reach the bottom of its range at 106.60, according to FXStreet’s Chief Analyst Valeria Bednarik. 

Key quotes

“In the 4-hour chart, USD/JPY is trading just below a congestion of moving averages, with the 20 SMA below the larger ones. Technical indicators, in the meantime, hover around their midlines with modest downward slopes.”

“The USD/JPY pair can test the low end of its latest range, the 106.60 price zone, on a break below 106.95, while to the upside, it could advance towards the 107.70 price zone before meeting sellers.”

“The pair could see some action with the release of the preliminary estimate of the US Michigan Consumer Sentiment Index, foreseen in July at 79 from 78.1 in the previous month.”