The USD/JPY pair held on to its modest intraday gains through the early European session and was last seen trading near the top end of its daily range, around mid-105.00s. A combination of supporting factors assisted the pair to regain positive traction on the first day of a new trading week and recover its losses recorded in the previous session.

Bets for a massive US stimulus package increased further after the US Senate approved a budget resolution to fast track President Joe Biden's proposed $1.9 trillion coronavirus relief plan to be approved without Republican support. This, in turn, pushed the yield on the benchmark 10-year US government bond to near one-year tops and revived the greenback demand on Monday.