USD/JPY to see further slides, initial support awaits at the 104.36 daily low

USD/JPY peaked at 105.34 early on Wednesday, now trading around 104.60 as markets are stabilizing ahead of US presidential election fresh results. The pair is poised to extend its decline, according to intraday technical readings, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The voting count of mailed ballots is what takes the most time and the main reason why the result is being delayed. At this point, AP reports that Joe Biden has won 238 electors, while Donald Trump got 213. There are four critical states that are still being contested and could define the election one way or the other.”

“The Bank of Japan published the Minutes of its latest meeting, and the document showed that policymakers are still concerned about how to address the economic setback resulting from the coronavirus pandemic. The US session will bring the ADP Survey on private jobs creation, foreseen at 650K in October from 749K in the previous month. The country will also publish the official ISM Services PMI, expected at 57.5, slightly below the previous 57.8.”

“The 4-hour chart shows that the pair was unable to hold on to gains above bearish 100 and 200 SMAs, now also trading below a bullish 20 SMA. Technical indicators have turned lower, now below their midlines, and suggesting additional slides ahead. The daily low was set at 104.36, providing immediate support, although the critical one is the 104.00 area, where the pair bottomed in the last two months.”