The USD/JPY pair trades uneventfully near its weekly high, as investors are ignoring the safe-haven pair while the US heads into polling stations, Valeria Bednarik, Chief Analyst at FXStreet, informs.
Key quotes
“The US presidential election day has come. The greenback is under strong selling pressure as equities and commodities advance. Volatility took over the financial world and will persist until Wednesday’s European morning, as results will be out throughout the next Asian session. A holiday in Japan exacerbated the quietness at the beginning of the day.”
“The first results will start to come around 00:30 GMT Wednesday. Data from key states such as Michigan, Pennsylvania and Arizona will be out after 1:00 GMT. The trick comes from mail-in ballots’ counting. Some states estimate that it could take up to two weeks to complete it, although most are confident they will finish by Friday. Still, US President Trump has menaced with legal action if the results are delayed. The country is preparing for a rough night and so do markets.”
“The USD/JPY pair maintains a positive stance in the short-term, as, in the 4-hour chart, it continues developing above a bullish 20 SMA. The Momentum indicator aims higher within positive levels, while the RSI is stable at around 55. The 100 SMA, however, maintains its bearish slope around 104.95, providing dynamic resistance. The pair would have better chances of extending its gains once above 105.10.”
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