USD/JPY Price Analysis: Does the pair follow the rise in stocks or the weakness in the dollar?

• USD/JPY is trading 0.07% lower on Monday despite equities performing well.
• In general, the US dollar is weaker across the board as global risk appetite improves.

USD/JPY 4-hour chart

USD/JPY has been a strange one of late. The price traditionally moves higher with stock markets. At the moment the risk the coronavirus presents is still keeping the yen strong despite indices hitting the roof. The Japanese yen is a safe haven currency and in recent times the dollar has also been used as a safe-haven. In this case, if the US is going to get worse in regards to COVID-19 fatalities and cases maybe there will be some more flow into the JPY over time.

Looking at the chart now and it seems the price is heading towards support zones. The next major support is at 107.20, it is at this level the price has been touched many times and it has been used as a support or resistance zone at least three times on this chart alone. Beyond that, the orange line at 106.60 is next up and the key psychological level of 107.00 is in between. 

Both the indicators on the chart have recently turned bearish. The Relative Strength Index has dipped below the 50 mid-point and there is still some space to move into the oversold area. The MACD histogram is now red but the signal lines are above the zero level. Although the look like they could follow the histogram to the downside. 

Additional levels