USD/JPY once again finds support at 104.00 handle

The USD/JPY pair ran through fresh offers after Bloomberg report showed that Donald Trump has a slim lead in Florida over Democrat's Hillary Clinton.

A Bloomberg Politics poll showed that Republican presidential nominee Donald Trump has 2-point edge (45%) over Democrat Hillary Clinton’s 43% in the state of Florida. Immediately after the report, the pair turned lower to hit a fresh session low, just shy of 104.00 handle, before quickly retracing back to currently trade around 104.15 region. 

The prevalent bearish sentiment surrounding European equity market is also contributing towards the Japanese Yen's safe-haven demand and exerting some selling pressure around the major.

Further downslide, however, seemed limited as market players remain convinced that the Fed would eventually raise interest rates before the end of this year and might continue extending support to the greenback's ongoing up-trend.

Next in focus would be the release of flash services PMI and new home sales data from the US ahead of Q3 GDP print on Friday, which remains this week's key event risk for the pair's near-term recovery trend.

Technical outlook

A team at Dukascopy Bank SA, notes, "Due its poor performance on Tuesday, the USD/JPY pair managed to preserve its consolidation trend. Since the upper border of the trend was reached, the Buck is expected to weaken against the Japanese Yen today. The closest area to limit the losses is located around 103.75, formed by the weekly pivot point and the monthly R1. A drop lower is unlikely, as there are no significant market movers present today and technical indicators keep giving bullish signals. However, a return under the 104.00 mark is quite possible, unless bulls decide to push the Greenback higher".