USDJPY Technical Analysis – It’s the US Election Day

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.

See the video below

This article was written by Giuseppe Dellamotta at www.forexlive.com.