USD/JPY unable to react, near 104.30

The Japanese currency keeps its solid note on Tuesday, now relegating USD/JPY to return to the area of 104.30, fresh multi-day lows.

USD/JPY weaker on stimulus rumours

The bearish bias remains intact around the pair as investors believe the imminent stimulus package could come short of market expectations in response to comments by Japanese officials earlier today.

Additionally, market participants expect the FOMC to remain ‘on hold’ at tomorrow’s meeting, increasing the cautious tone around spot and prompting the recent USD-rally to slow its pace.

USD/JPY levels to consider

As of writing the pair is losing 1.40% at 104.33 and a breakdown of 104.12 (20-day sma) would open the door to 103.28 (50% Fibo of 99.08-107.48) and finally 100.02 (low Jul.8). On the upside, the initial hurdle aligns at 106.12 (55-day sma) followed by 107.48 (high Jul.21) and finally 108.01 (100-day sma).