USD/JPY chart - Trading View
USD/JPY was trading largely unchanged at 104.57 at around 06:40 GMT, slips lower from session highs at 104.71.
Increasing hopes of US President Joe Biden’s $1.9 trillion stimulus can be considered as a major reason for the greenback’s weakness.
Price action has failed to hold break above 110-EMA and outlook has turned bearish after rejection at 200-DMA.
5-DMA has turned and Stochs and RSI have rolled over from overbought levels. MACD is on verge of bearish crossover on signal line.
The pair has paused weakness above 21-EMA support. Break below finds strong support at daily cloud.
Looking forward, focus shall be on Fed speak and U.S. inflation data for impetus. Breach below cloud will see significant downside in the pair.
