USD/JPY bulls recovery bearish gap, watching BoJ and US election polls

Following the US closing session's where the USD/JPY fell from 105.53 to 104.47, the bearish theme continued in early Asia which is now being corrected in Tokyo.

There was  a bearish opening gap testing the mid-point of  the 104 handle before bulls were making a minor recovery and closing the bearish gap in the Tokyo open with fresh high of 104.87 so far. The dollar was well-bid last week on the back of strong US GDP data, but only to be sold off when the news hit the wires that the FBI was to reopen an investigation of Clinton's emails and this subsequently pushed US equities and the dollar lower offering the Yen some demand in the process. 

We have the BoJ coming up as a key focus in markets, albeit  widely expected to stay with its policy of controlling the yield curve out to 10 years argued analysts at Rabobank.  "Kuroda this morning stated in a parliamentary hearing that policy makers would not be attempting to push down longer dated yields since he didn't see a flattening in the yield curve as desirable. This news is likely to be reassuring for the banking sector."

USD/JPY levels

"Technically, the BoJ's aggressive monetary policy measures should undermine the value of the JPY going forward," suggested the analysts at Rabobank. 

The key resistance to the upside comes as the mid-point of the 105 handle where the 200 dma and daily highs meet, currently at 104.53/106.62.  Then we have the July high near 107.50 that could offer hard-line resistance.102.00 is the key downside target ahead of 100.00 and 98.00, levels that have been eyed in respect to the US levels and a potential surprise Trump victory and subsequent sell-off in the greenback. 

US election polls are now narrowing: the Gop seized the day over new Clinton FBI investigation