USD/JPY keeps highs near 104.50, US elections eyed

The greenback has started the week on a strong note vs. its main rivals, now pushing USD/JPY to the area of daily tops in the mid-104.00s.

USD/JPY bid on FBI-Clinton

Spot met an abrupt upside pressure early on Monday as market participants have intensified the demand for the US dollar after the FBI cleared Democratic candidate H.Clinton over the emails controversy.

The better tone in the buck is sending the pair more than 1% higher at the beginning of the week, posting 4-day tops and adding to Friday’s gains following the release of Non-farm Payrolls (161K).

In the US data space, the Fed’s Labor Market Conditions Index is only due although all the attention will be on the US presidential elections tomorrow, with opinions on the potential outcome still pretty divided.

On the positioning side, JPY speculative net longs have remained stable during the week ended on November 1, showing the likeliness of further consolidation in the near term.

USD/JPY levels to consider

As of writing the pair is up 1.31% at 104.44 and a break above 105.55 (high Oct.28) would aim for 106.52 (200-day sma) and finally 107.48 (high Jul.21). On the flip side, the next support lines up at 102.81 (55-day sma) followed by 102.54 (low Nov.3) and then 101.18 (low Sep.7).