USD/JPY: Poised to extend its advance as bulls pressures the 105.00 level

The USD/JPY pair consolidates its latest gains, trading a handful of pips below the 105.00 threshold. Japan’s Prime Minister Suga extended the state of emergency until March 7 while attention gyrates to a US stimulus package, as negotiations loom, FXStreet’s Chief Analyst Valeria Bednarik briefs.

See – USD/JPY: Yen depreciation to extend further over short-term – MUFG

Key quotes

“The good mood is supported by looming stimulus negotiations in the US, as President Joe Biden and Republican senators will kick-start talks today. Biden has proposed a $1.9 trillion aid package, while the GOP's counter-offered a $600 billion one.”

“In Japan, Prime Minister Suga Yoshihide extended the state of emergency for ten prefectures until March 7, as the country battles its most serious wave of coronavirus infections yet. The country published the January Monetary Base, which improved by less than anticipated, printing at 18.9% YoY.”

“A steeper advance could be expected on a break above 105.20, the next resistance level.”