USD/JPY chart - Trading View
USD/JPY was trading largely muted at 104.66 at around 04:30 GMT, slipping lower from session highs at 104.79.
The pair opened the week's trade with a bullish gap up open, but failed to extend gains as market sentiment shifts positive.
Markets brushed aside lockdown in Perth and China’s downbeat PMIs and remained buoyed amid vaccine optimism and expectations of the US stimulus.
Further, tensions between Australia and China seemed to be easing with Australia PM Scott Morrison showing readiness to stay to remain connected with China.
USD/JPY trades with a strong technical bias. The pair confirmed cloud breakout on Friday's trade keeping scope for further upside.
Momentum is bullish. GMMA indicator shows short-term moving averages have edged above the long-term moving averages.
The pair has tested 23.6% Fib retracement, resumption of upside will see gains till 200-DMA at 105.62 ahead of 38.2% Fib at 106.07.
