USD/JPY: Steeper slump on a break below 106.60

The USD/JPY pair bottomed so far today at 106.69, now struggling with the 107.00 level. FXStreet’s Chief Analyst Valeria Bednarik notes the Dollar/yen below the 106.60 mark could suffer a sharp slide.

Key quotes

“The US will publish Initial Jobless Claims for the week ended June 12, foreseen at 1.3 million. Continuing Jobless Claims for the week ended June 5 are seen decreasing to 19.8 million from 20.9 million in the previous week.”

“The USD/JPY pair is nearing this month´s low at 106.56, bearish in the short-term. In the 4-hour chart, it has extended its decline below all of its moving averages, although they continue to lack directional strength. Technical indicators, however, have resumed their declines within negative levels.” 

“A break below the 106.60 price zone should anticipate a steeper decline, with investors then targeting the 105.90 area.”