USD/JPY Steadies After Initial Swings, All Eyes On Election

It is already an outside day for USD/JPY, as increased volatility allowed the rate to peek through both of yesterday's extremes in early Asia-Pac trade. Both sides of the pair have been offered against their G10 peers, as sentiment remains positive with first projections suggesting that Trump took Kentucky, Indiana & West Virginia, while Biden won Vermont & Virginia, with Florida being a very close race. Despite earlier swings, USD/JPY last trades flat at Y104.51.

• Japanese FinMin Aso told reporters that the gov't is yet to consider another extrabudget in concrete terms and will act appropriately according to economic & health conditions.
• Bulls need a clearance of Nov 2 high of Y104.95 before targeting Oct 26 high of Y105.06, a key near-term resistance. Conversely, a dip through Sep 21 low & round figure at Y104.00 would support the bearish case, opening up the 76.4% retracement of the Mar 9 - 24 rally at Y103.67.
• Final Jibun Bank Services & composite PMIs will be released out of Japan tomorrow, while local earnings/spending data hits the wires on Friday.