DAILY NOTION - FXEXMPIRE - USD/JPY Forecast - Nov 1, 2020
The USD/JPY pair finished nearly flat last week as investors battled over which currency would be the preferred safe-haven asset ahead of Tuesday’s U.S. presidential election and amid a steep sell-off in U.S. equity markets. Traders showed little reaction to announcements from the Bank of Japan and the shelving of the latest round of U.S. fiscal stimulus talks.
Last week, the USD/JPY settled at 104.672, down 0.031 or -0.03%.
Reuters reported that gauges for implied currency swings in the foreign exchange markets jumped to their highest levels in nearly seven months on last Wednesday as traders anticipated more volatility before the outcome of the U.S. elections.
What's Next?
If this week’s election result is contested by either Donald Trump or Joe Biden, or the result divides the Senate and the House of Representatives between the two parties, safe-haven currencies are likely to gain.
The key level to watch in the USD/JPY is 104.00. Trader reaction to this level will likely determine the next major move in the Forex pair.
Look for the U.S. Dollar to gain if we see a rebound in U.S. Treasuries. The Japanese Yen is likely to benefit from an extremely chaotic situation.
Read more from the original analysis: https://www.fxempire.com/forec...
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.