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The USD/JPY pair hovers around 105.60 and could break below 105.00 as the dollar’s broad weakness prevails ahead of several first-tier events later this week, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Chinese data released overnight kept the positive sentiment afloat, although as it happened yesterday, a caution stance prevails ahead of first-tier events to take place later in the week.”

“The USD/JPY pair is biased lower according to intraday technical readings. The 4-hour chart shows that it keeps developing below all of its moving averages, with the 20 SMA crossing below the larger ones, and all of them above 106.00. Technical indicators, in the meantime, have turned lower within negative levels, lacking enough momentum but still indicating sellers are in control.”

“A steeper decline is to be expected on a break below 105.50, an immediate support level.”