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USD/JPY sits in consolidation awaiting the US events

FXStreet (Guatemala) - USD/JPY is trading at 113.59, down -0.07% on the day, having posted a daily high at 113.69 and low at 113.41.

USD/JPY has remained capped and floats within a tight range on the 11 handle. There has been little to go with since the Central Banks of last week but coming up there is plenty to play for through this stage of consolidation. We will get the early results from the US midterm elections for a start. Analysts at Westpac noted that there is a high probability on the Republicans recapturing the Senate and increasing their House majority.

“This would enhance the divisions between President Obama and Congress into the 2016 presidential election. But markets could respond positively to the prospect of House and Senate agreeing on e.g. new energy projects. Please see our piece “US midterm elections and the markets””. Then, further as we go, we will get the ADP private payrolls for Oct and the Oct non-manufacturing ISM and markets are looking for good numbers on the releases. Any disappointments may see the pair tail off from the psychological zones we are oscillating within.

USD/JPY noteworthy levels

Current price is 113.59, with resistance ahead at 113.67 (Daily Open), 113.69 (Daily High), 113.78 (Monthly High), 113.78 (Weekly High) and 113.78 (Annual High). Next support to the downside can be found at 113.52 (Daily Classic PP), 113.51 (Hourly 20 EMA), 113.41 (Daily Low), 113.17 (Yesterday's Low) and 112.82 (Daily Classic S1).

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