USD/JPY: watching the downside in mounting risk-off scenes

Currently, USD/JPY is trading at 103.37, up 0.08% on the day, having posted a daily high at 103.47 and low at 103.29.

USD/JPY is one to watch over the course of the next several weeks with all that is happening, from US jobs, the Fed, U.S. elections and with the yen being the market's favourite risk off play along with CHF, the BoJ could be forced into action should the 100 psychological level give out to 2016 lows at 99.00 while under the pressure and being defined back into the late 2015 bearish trend. 

Full statement Fed decision: Nov 2, 2016

Meanwhile, the FOMC left rates on hold overnight at 0.25-0.50%, as widely expected. There was plenty of repetition in the statement, but it said that there has been some further evidence that a case for rate hike has continued to strengthen while inflation has increased some what since earlier this year. The statement said economic conditions will evolve and near term risks to the economy appear balanced. Markets are pricing in a 78% chance of a rate hike this December.

USD/JPY levels

Spot is presently trading at 103.38, and next resistance can be seen at 103.47 (Daily High), 103.48 (Hourly 20 EMA), 103.59 (Daily Classic S1), 103.77 (Weekly Classic S1) and 103.87 (Daily 20 SMA). Next support to the downside can be found at 103.31 (Daily Open), 103.30 (Weekly Low), 103.29 (Daily Low), 103.02 (Daily Classic S2) and 103.02 (Yesterday's Low).

Key event: US election panel

Meanwhile, don't miss our US election panel with expert guests, Adam Button and Martin Armstrong, hosted by FXStreet's Ross Burland.