FxWirePro: USD/JPY edges higher from 3-week lows, dollar stalls downside on renewed hopes of US fiscal stimulus

USD/JPY chart - Trading View 

USD/JPY was trading marginally higher at 105.50 at around 06:15 GMT. Sell-off in the major stalled and the pair recovered from 3-week lows at 105.10.

The greenback is drawing some support on US stimulus progress, ahead of Fed minutes. Also, looming uncertainty around the US-China trade talks lifted the dollar’s haven demand.

A senior US official said that he sees a 'real desire' by some Democrats and Republicans to reach an agreement on a smaller stimulus deal of around $500 billion.

FOMC July meeting’s minutes due later today will be closely watched for clues about anticipated shift in the policy outlook.  

Price action has slipped below 20-DMA and technical indicators support downside resumption.

Lower Bollinger band at 104.62 in sight. Further weakness will see dip till Channel base at 103.30.

Support levels - 104.62 (Lower BB), 104.18 (July 31 low), 103.30 (Channel base)

Resistance levels - 105.86 (20-DMA), 106.13 (21-EMA), 106.62 (55-EMA)