The Japanese government is about to decide on Thursday on whether to lift the coronavirus pandemic-induced state of emergency, as the emergency in Tokyo and surrounding regions is set to end on March 21, a news was reported.

This came after Tokyo reported 175 new COVID-19 cases Monday, which fell below 200 for the first time in a week and a day after reporting 239 infections. On Sunday, the daily number of newly confirmed cases nationwide came to 989, standing below 1,000 for the first time in six days.

Elsewhere, Japan’s Prime Minister (PM) Yoshihide Suga while speaking at a government meeting on Tuesday. Said that he will decide next week whether to utilize the JPY500 billion ($4.58 billion) in reserve funds for targeted payments. The measures covers payments of JPY50,000 to single-parent and low-income households as well as aid for work training and food banks, PM Suga added.

On the other hand, The U.S. dollar clung to small gains on Tuesday before of the major central bank meetings, beginning with a two-day Federal Reserve gathering due to start later in the global day.

Expectations are running low for monetary policymakers to shift from their accommodative stance despite forecasts of rapid economic growth in the wake of an accelerating COVID-19 vaccine roll-out and a $1.9 trillion pandemic relief package.

“The market is really sitting tight waiting for the Fed decision, because the huge move in U.S. bond yields has been so key that the market really needs to see what they plan to do” said a strategist.

USD/JPY 4 Hour Chart:

Support: 108.91 (S1), 108.69 (S2), 108.46 (S3)

Resistance: 109.36 (R1), 109.59 (R2), 109.81 (R3).

Amidst all the catalysts creating confusion among the yen traders. We expect a mixed trend for USD/JPY.