USD / JPY recovery stops just before 105.00

• The rally of the US dollar finds resistance at the 104.90 / 00 area.
• The dollar remains strong with all eyes on the US election.
• USD / JPY is still looking at 104.00 – UOB.

The U.S. dollar remains trading in the tone offered on Monday, rising more than 0.3% on the day compared to yen japonés, to reach the resistance area at 104.90 / 00 where the bulls have paused several times over the past week.

The US dollar appreciates across the board

USD / JPY is pushing higher for the third day in a row on Monday, driven by safe-haven demand on concerns about uncertainty regarding the US election. As the gap between the two candidates narrows in polls, investors are cutting their positions, thus increasing the strength of the USD. The US dollar index, which measures the value of the dollar against a basket of the most traded currencies, has recovered to a five-week high at 94.28.

With only one day to go before the election, investors are extremely wary of making risky bets amid widespread skepticism about the ballot box. The experience of 2016, when Donald Trump’s victory was completely unexpected, and fears that the contested election will trigger strong price movements has triggered a race for safety that has strengthened the USD.

USD / JPY is still looking at 104.00 – UOB

From a broader perspective, the UOB currency analysis team cautions that the possibility of a bearish reaction below 104.00 should not yet be ruled out: “The risk of a breakout of 104.00 has risen and would continue to rise as long as the USD does not break. move 105.00 ‘. While the USD subsequently fell to a low of 104.01, it hasn’t been able to make much headway to the downside. From here on, a breakout of 104.00 is not yet ruled out, but to rejuvenate the current bearish momentum the USD has to move and stay below 104.50 in these few days or a breakout of 105.00 would indicate that the USD is not ready to move below 104.00 “.