USD/JPY Price Analysis: Back in familiar territory as the price approaches 106.00

• USD/JPY trades just under flat on Monday as the greenback losses ground.
• The price is heading to the value area of an old consolidation. 

USD/JPY 4-hour chart

USD/JPY has to be one of the most mundane currency pairs at the moment. Just as it looked like the pair was about to break lower the dollar catches a bid. Could it have been intervention?. Maybe but the price looks to be moving back into the middle of the old consolidation zone. 

Looking at the chart the most important zone is the 20 pip or so range between the black lines. This area has been acting like a magnet for the price since late July. If the price does fall back the bulls really do not like being below 104.00. Before that, there is a tentative level at 105.25 that has provided some support in the past.

The indicators are understandably back in the mid-zone. The MACD histogram is flat but the signal lines are above the middle area. The Relative Strength Index did look like it was about to hit the overbought area but has since retreated. 

Usually, the movement of the pair tracks the stock market and the risk theme well. At the moment, the dollar has been falling and the stock market pushed higher on Monday so the pair is stuck between a rock and a hard place. Maybe if there is some rest bite in one the other can inspire a move in the pair. 

Additional levels