- USD/JPY witnessed some selling during the first half of the trading session on Tuesday.
- Progress on additional US stimulus package weighed on USD and exerted some pressure.
- The risk-on mood undermined the safe-haven JPY and helped limit any further losses.
The USD/JPY pair traded with a mild bias through the Asian session, albeit lacked any follow-through selling and has managed to hold above mid-103.00s.
USD/JPY extends corrective pullback from an intraday low to 103.80 early on Tuesday. The pair's latest positive performance due to President Donald Trump's surprise signing of the US coronavirus (COVID-19) aid package pleased risk-takers on Monday.
Intraday bias for USD/JPY remains neutral as consolidation is still extending. The overall outlook stays bearish as the pair is now trading below a seven-week-old falling resistance line at 103.70, trying to regain the 104.00 threshold.
On the downside, a breakout of 103.40 will bring a fall to retest the 103.00 psychological round figure mark. USD/JPY buyers need a successful breakout of the seven-week-old falling resistance line which will be the first sign of bullish reversal. Otherwise, outlook will stay bearish in case of strong recovery.
