- Trump’s victory in Florida strengthens the USD and pushes the USD / JPY to two-week highs.
- The expected delay in final results weighs on sentiment and limits the pair’s rise.
The pair USD / JPY has fallen around 55 pips from the two-week highs, set at the level of 105.34 during the Asian session on Wednesday, although it is still holding decent intraday gains around the 104.80-85 region.
As the results of the American elections have started to come in, The pair has strengthened during the Asian session on Wednesday and has been supported by the emergence of aggressive buying interest around the US dollar.. The victory of incumbent President Donald Trump in Florida has provided a good boost to the US dollar and pushed the USD / JPY pair beyond the key psychological level of 105.00.
On the other hand, Democratic candidate Joe Biden has won in Arizona and has increased the chances of a “blue wave” in the US Congress. Having said that, the vote count could last several days and the delay in the result would continue to fuel uncertainty. News reports indicate final results for Michigan’s key battlefield state will not be available until Wednesday night.
This, in turn has weighed on investors’ appetite for higher perceived risk assets and benefited the safe-haven Japanese yen, limiting gains in the USD / JPY pair. However, USD / JPY has so far managed to stay in positive territory for the fourth day of the previous five, although investors could still refrain from opening aggressive directional positions.
Credits: Forex Street
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