USD/JPY: Bears to take control on a break below 103.15

USD/JPY retreated from near the 104.00 to the current 103.60 price zone as risk-on weighs on the greenback. The pair is neutral in the near-term, with the risk skewed to the downside, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“Risk-appetite leads the way within financial markets, although currency pairs keep struggling to post relevant directional movements. The dollar is the weakest, despite the House of Representatives voted to increase the direct payments in the coronavirus relief bill from $600 to $2,000. The bill needs now Senate approval, which seems a bit tougher to get.”

“The 4-hour chart shows that technical indicators stand pat around their midlines, without directional strength. The price is struggling around a mildly bullish 20 SMA, but the upside is limited by bearish longer moving averages. Bears could gain control on a break below 103.15, although chances of such a decline are a few.”