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.

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