USD/JPY: Further declines expected on a break below 103.15

USD/JPY trades in the 103.40 price zone, giving up its modest Tuesday’s gains. The pair maintains its neutral-to-bearish stance, with the risk skewed to the downside, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“In the US, Congress has finally passed a coronavirus-relief bill, but US President Trump hasn’t signed it and urged lawmakers to amend it. In a video message, he said that the package is full of ‘wasteful’ item and said that the $600 payment should be $2,000. The dollar is under pressure, although major pairs keep trading within familiar levels.”

“The Bank of Japan published the Minutes of its latest meeting. The document showed that policymakers could consider tweaking its current bond-buying program to ‘enhance sustainability’ in the longer-run.”

“In the 4-hour chart, USD/JPY is struggling around a mildly bearish 20 SMA while below the larger ones. Technical indicators hold around their midlines, with modest downward slopes. A steeper decline could be expected on a break below 103.15, the immediate support level.”