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USD/JPY is consolidating losses near the 104.00 threshold following Treasury yields, as the one for the 10-year note is down to 0.73% while the US presidential election is still uncertain, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Joe Biden leads with 264 electors while US President Trump has gotten 214. There are some states still to report, while Trump is legally battling the results of at least other three.”  

“Japan published the October Jibun Bank Services PMI, which came in at 47.7. The US session will bring Initial Jobless Claims for the week ended October 30, foreseen at 732K from 751K in the previous week. The country will also publish October Challenger Job Cuts and Q3 Nonfarm Productivity. In the American afternoon, the US Federal Reserve will unveil its decision on monetary policy, although the central bank is expected to remain on hold.”

“USD/JPY is bearish, although still above the critical 104.00 threshold. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA accelerating south below the larger ones. Technical indicators remain well into negative levels, with modest downward slopes.”