Fundamental Overview
The US Dollar started the week on the backfoot as the odds of a Harris victory jumped higher leading to a pullback in the Trump’s trades.
Everything hinges on the US election now with a red sweep seen as the most bullish scenario for the greenback, while a blue sweep as the most bearish.
The price action will likely be choppy until we start to get a better sense of who’s going to win, so the best strategy would be to wait for the results, because the trend that will be set will likely last for months anyway.
USDJPY Technical Analysis – Daily Timeframe
On the daily chart, we can see that USDJPY is consolidating around the key 152.00 handle. The buyers will likely keep on stepping in around this level with a defined risk below it to position for the continuation of the uptrend. The sellers, on the other hand, will want to see the price breaking lower to extend the pullback into the 149.40 level next.
USDJPY Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more clearly the rangebound price action around the 152.00 handle as the market awaits the US Election result to pick a direction. There’s not much else we can add here as the buyers will likely pile in to position for a rally into new highs, while the sellers will look for a break lower to target the 149.40 level.
USDJPY Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor downward trendline defining the current bearish momentum on this timeframe. If we get a bounce here, the sellers will likely lean on the trendline to position for the break of the 152.00 support zone.
The buyers, on the other hand, will want to see the price breaking higher to increase the bullish bets into new highs. The red lines define the average daily range for today.
Upcoming Catalysts
Today is the US Presidential Election Day but we will also get the US ISM Services PMI report. On Thursday, we have the Japanese wage growth data, the US Jobless Claims and the FOMC Policy Decision. On Friday, we conclude the week with the University of Michigan Consumer Sentiment report.
