USD/JPY drops below 113 as dollar weakens on early midterm election results
|- US Dollar Index falls below 96 in the early NA session.
- Democratic candidate leads the key Senate race in Florida.
After closing the day with modest gains on Tuesday, the USD/JPY came under a renewed selling pressure in the Asian session as the greenback started to weaken against its rivals. As of writing, the pair, which touched a session low of 112.97, was trading at 113.10, losing 0.32%.
With more than 50% of votes counted, the Democratic candidate Nelson stays in the lead in key Florida Senate race to point to a weaker-than-expected performance from the Republican side. The initial market reaction to this development weighed on the greenback and the US Dollar Index fell to a fresh two-week low at 95.90. At the moment, the DXY is down 0.35% at 95.93. Although it's still too early to say what the final results will look like, it's clear that the dollar's market valuation will be impacted by surprise voting outcomes.
On the other hand, Japan's Cabinet Office will publish its Leading Economic Index and Coincident Index later in the session.
Live coverage: High uncertainty around the US Mid-term Elections set to rock the US Dollar.
Technical levels to consider
The pair could face the first technical resistance at 113.50 (Nov. 6high) ahead of 113.90 (Oct. 8 high) and 114.50 (Oct. 3 high). On the downside, supports are located at 112.95 (daily low), 112.60 (50-DMA) and 112 (psychological level/100-DMA).
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