USD/JPY is barely moving despite dollar weakness elsewhere

• USD/JPY is 0.03% higher on the session despite some movement in FX elsewhere.
• The pair does not seem to be reacting to the risk move as stocks move higher on Monday. 

USD/JPY daily chart

USD/JPY is traditionally the second most liquid FX pair but it seems pretty dead at the moment. Normally if stock markets are on the rise USD/JPY normally moves with them. Today the S&P 500 is trading over half a percent higher and the safe-haven gold is 0.59% in the black slightly conflicting correlations perhaps then.

Looking at the chart below, the range for the session is a meagre 25 pips and the pair has dipped below the psychological 107.00 level once again.  The next support on the downside is the previous wave low at 105.98 and beyond that the 105.00 psychological zone.

Looking at the indicators the price is trading bearishly under the 55 and 200 moving averages. The Relative Strength Index is under the 50 level but slightly far away from oversold levels. The MACD histogram is red and the signal lines have dipped below the mid-point. 

Overall, the daily chart is looking bearish but there is a distinct lack of conviction in traders on this pair at the moment. From a fundamental standpoint, it seems that the US has more in its arsenal and the BoJ and Japanese government have used all the tools on their toolbox. The US is looking to put together another round of stimulus and just today the Trump administration stated another round of cheques could be sent out to the public. This means some upside could be noted in the medium-term, only once the pair wakes up though.

Additional levels