USD/JPY: Bears eye 104.00 amid US election jitters
|- USD/JPY refreshes intraday low below 104.50 while printing a three-day losing streak.
- Risks dwindle as Joe Biden wins in Michigan, chatters over Pennsylvania ballot-counting.
- Japan’s Jibun Bank Services PMI for October grew past-46.9 to 47.7.
USD/JPY takes offers around 104.25, down 0.26% intraday, during the initial hour of Tokyo open on Thursday. The pair recently weighed down by mixed risk catalysts emanating from the US election updates as well as upbeat data from Japan. Also weighing the quote could be the news from Europe and China.
Joe Biden inches closer to winning the US presidential election after the latest victory in Michigan hiked his electoral count to 264 versus 270 required. On the other hand, US President Donald Trump & Company battles with Pennsylvanian authorities over ballot counting after already applying for the vote recount in Wisconsin.
Elsewhere, Italy announced lockdown in Lombardy, including Milan, to tame the covid resurgence whereas China bans travelers from the UK due to the pandemic spread in England.
Amid all these plays, S&P 500 Futures print mild gains while Japan’s Nikkei 225 rises over 1.0% by press time. Though, US 10-year Treasury yields remain depressed below 0.80% at the time of writing.
On the other hand, the recently published Jibun Bank Services PMI for October exerted additional downside pressure on the pair while rising past-46.9 initial forecast to 47.7.
Moving on, US election updates can offer intermediate moves to the pair while a challenge to the poll outcome can weigh on the quote. Also important will be how the US Federal Reserve convey the recent economic challenges due to the coronavirus (COVID-19) wave 2.0.
Read: Fed Preview: Powell set to see glass half full, unless he has depressing NFP data
Technical analysis
Although USD/JPY sellers stay directed towards 104.00 unless breaking 50-day SMA level of 105.35, might not hesitate to challenge the March 12 low near 103.10/05.
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