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.

Anil Panchal FXStreet

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.

Additional important levels

Overview
Today last price	104.27
Today Daily Change	-0.25
Today Daily Change %	-0.24%
Today daily open	104.52

Trends
Daily SMA20	105.02
Daily SMA50	105.4
Daily SMA100	105.98
Daily SMA200	107.06

Levels
Previous Daily High	105.35
Previous Daily Low	104.15
Previous Weekly High	105.06
Previous Weekly Low	104.03
Previous Monthly High	106.11
Previous Monthly Low	104.03
Daily Fibonacci 38.2%	104.61
Daily Fibonacci 61.8%	104.89
Daily Pivot Point S1	104
Daily Pivot Point S2	103.48
Daily Pivot Point S3	102.8
Daily Pivot Point R1	105.19
Daily Pivot Point R2	105.87
Daily Pivot Point R3	106.39

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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