USD/JPY unimpressed by fiscal stimulus talk

A batch of news highlighting details of possible fiscal stimulus plan has not impressed USD/JPY, which continues to trade comatose around 105.80 levels.

Offered at 106.26

The currency pair was offered at 106.26 as markets continued to square off Yen shorts on falling prospects of helicopter money in Japan. Fresh reports suggesting stimulus talk in Japan hit the wires, but failed to strengthen the offered tone around Yen.

The spot currently trades around 105.9, but presents a risk to strength in the equity markets across the globe if the corrective rally in JPY gathers steam.

USD/JPY Technical Levels

The immediate hurdle is noted at 106.00 (zero figure), above which the spot could target 106.64 (38.2% of 2011 low – 2015 high). A break higher would expose 107.48 (previous day’s high). On the other hand, breach of support at 105.17 (23.6% of 2015 high-2016 low) could yield 104.63 (July 15 low), under which a major support is seen at 103.75 (61.8% of Brexit day drop).