FxWirePro: USD/JPY extends choppy trade, hopes of major U.S. fiscal stimulus support risk-on

USD/JPY chart - Trading View 

USD/JPY extends choppy trade, spot prices hover at 103.76, down 0.13% at around 04:50 GMT after closing 0.21% higher in the previous session.

Risk-on sentiment seen today seen weighing on the U.S. dollar. DXY extends weakness for the 3rd straight session.

As Janet Yellen pushes the proposed $1.9 trillion stimulus package, markets are more hopeful that Biden will garner enough support to gain Senate approval.

BoJ policy meeting on Thursday will be in focus. The central bank is widely expected to stay pat. 

Analysts expect the central bank could reassess the Japanese economic outlook, in light of the covid developments in the country.

The pair grinds sideways between major 21 and 55 exponential moving averages, breakout required for clear direction.

Series of stiff resistances upto 104.65 (cloud top). Break above daily cloud will fuel upside. Next major bull target lies at 200-DMA at 105.79.

On the flipside, price action has bounced off 21-EMA support. Weakness only on break below. Breach below finds next major support at 102.45 (trendline).