The USD/JPY pair extends its downward spiral into a third consecutive day today, with the JPY bulls on fire amid widespread risk-aversion and thin markets.
USD/JPY eyes 102.65 – next support
The Japanese yen is seen extending its bullish move versus its American counterpart in mid-Asia, knocking-off USD/JPY to fresh four-week lows of 102.74, as a renewed bout of risk-aversion appears to have gripped the markets, with some aggressive USD selling seen in the backdrop.
The major remains relentlessly offered in wake of the increased nervousness heading into the US elections scheduled next week, with a potential Trump win now priced-into markets. A Trump win is negative for markets, as they believe that Trump’s taxation, anti-trade policies may drag the US economy back into recession.
Meanwhile, amid low volumes and limited volatility, the spot remains at the mercy of persisting risk-trends ahead of the US macro data-flow due later in the NA session. Focus now remains on the US payrolls data due Friday, especially after yesterday’s hawkish FOMC decision.
USD/JPY Technical levels to watch
In terms of technicals , the immediate resistance is located at 103 (round figure). A break above the last, the major could test 103.50 (daily pivot) and 103.93 (5-DMA) beyond the last. While to the downside, the immediate support is seen at 102.65 (Oct 5 low) next at 102 (round figure) and below that at 101.61 (daily S3).
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