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The USD/JPY pair consolidates weekly gains in the 104.20 price zone, underpinned by the continued advance in US Treasury yields, but still needs to surpass the 104.50 price zone to gain traction, FXStreet’s Chief Analyst Valeria Bednarik briefs. 

See: USD/JPY to test the 105.91 200-DMA on a break above 104.38 – Commerzbank

Key quotes

“Hopes for additional fiscal stimulus play against safe-haven government bonds, while also provide support to high-yielding equities. Markets are moving beyond political turmoil in the US, as House Democrats introduced an impeachment article against US President Donald Trump.”

“The USD/JPY pair retains its bullish potential in the near-term, although it still needs to run past a descendant trend line coming from March 2020 in the 104.50 price zone.”