USD/JPY is on the defensive so far this Monday, moving back and forth around the 104.00 level, as markets remain in search of a clear direction heading into this week’s Fed decision.

The spot remains divided between broad-based US dollar weakness on one-hand and improved prospects of Japan’s economic recovery on the other. The imminent rollout of the coronavirus vaccines in the US after the FDA authorization and a likely US fiscal stimulus deal have boosted the risk inflows across the financial markets this Monday, weighing negatively on the safe-haven US dollar. Looking ahead, the spot is likely to maintain its recent range play, awaiting the Fed monetary policy decision due this Wednesday.