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  • USD/JPY wavers around four-week high as bulls keep the baton.
  • S&P 500 Futures drop 0.20% amid virus woes, chatters over US President Trump’s impeachment.
  • US stimulus hopes favor bulls despite ‘Coming Of Age Day’ off in Japan.

USD/JPY battles the mid-December 2020 high while taking rounds to 104.10/05 during Monday’s Asian session. In doing so, the yen pair rises for the fourth consecutive day despite the coronavirus (COVID-19) risks as hopes of the US fiscal stimulus gain momentum.

Nothing matters more than the US stimulus…

With the Democratic victory in the US 2020 elections, not only Americans but global market players also expect faster proceedings towards the much-awaited US aid package. The mood got an additional push after December’s employment data from America, published Friday, marked downbeat prints.

It should, however, be noted that the recent jump in the covid cases and spread of the virus strain initially found in the UK and South Africa question the risks. Also on the negative rise are the US Democratic Party members’ pushes to impeach President Donald Trump on his alleged inciting of the Capitol Hill attacks. Furthermore, the Sino-American tussle and holiday in Japan are extra barriers to the risk-on mood.

That said, S&P 500 Futures drop 0.20% while the US dollar index (DXY) fades the recent corrective pullback. USD/JPY traders should also note that the jump in the US 10-year Treasury yeilds and Wall Street benchmarks could be cited while tracing the quote’s latest upside.

Although risk challenges can keep the USD/JPY bulls pressured, increasing odds of the US aid package favor the further upside of the yen pair. It’s worth mentioning that worsening virus conditions in Japan add to the USD/JPY upside hurdles.

Technical analysis

Although a clear break above the two-month-old falling trend line, currently near 103.45, favors USD/JPY bulls, further upside will be challenged by a descending trend line from July 01, at 104.45 now.