On Tuesday, the USDJPY pair was down 0.2%, trading at around 102.90.
The immediate support now appears to be near yesterday's lows of 102.70, and if taken out, the greenback might deteriorate toward the 102 level.
From the medium-term perspective, the USDJPY pair might drop toward the low of the post-COVID crash in March, which is somewhat above101.
Alternatively, if the pair starts rallying, the first selling zone is expected at 103.20, where November lows are. The key resistance still remains near 104, and as long as the dollar trades below it, the medium and short-term outlooks seem bearish.
As real yields continue to collapse, which is pushing the inflation expectations to multi-year highs, the greenback has few reasons to go up, especially as investors are demanding more fiscal and monetary stimulus to combat the virus outbreak's deteriorating situation