Strengthens Against Weaker USD

USD/JPY fell on Tuesday as the US dollar snapped a 3 day winning streak in the wake of a strong 10-year auction.

• USD/JPY started the US session around 104.30 but ground lower throughout the afternoon to close at 103.75, the pair has come under some further pressure at the start of Asia on Wednesday, last down 9 pips at 103.67.
• There has been little in the way of notable local headline flow, with continued focus re: the potential expansion of the areas covered by the COVID-19 state of emergency. Japanese Prime Minister Suga news conference scheduled for 1000 GMT/1900JST to give an update on the situation.
• A piece in the Nikkei has garnered some attention; The BoJ is said to be considering cutting growth forecast for the fiscal year at the January meeting, taking into account a resurgence in Covid-19 cases.
• Data from Japan showed money supply rose in line with estimates in December at 9.2% for the M2 metric, and 7.6% for M3. Further local data releases today are headlined by the flash core machine orders print.
• The pair has cleared the 50-day EMA, strengthening current short-term bullish conditions. Furthermore, Monday's climb resulted in prices briefly breaching key resistance, today at 104.34, defined by the top of a bear channel drawn of the Mar 24 high. A channel break would signal a stronger reversal. On the downside, initial support is at 103.60, the 20-day EMA