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USD/JPY is bouncing from critical support at 104.40, but still not out of the woods, as the pair needs to break the 104.95 level to continue its advance, FXStreet’s Chief Analyst Valeria Bednarik informs.

Key quotes

“The approval of US President Joe Biden’s stimulus package could bring assets back to life, although it does not seem it will happen in the near-term.”

“Further gains still seem limited, as the pair remains below a bearish 20 SMA, while technical indicators barely recovered from oversold readings.” 

“The pair would have better chances of advancing once above 104.95, the 38.2% retracement of the mentioned rally.”