USDJPY Hovers Above Key Support Ahead of US Elections

·    November 2, 2020

·      November 2, 2020

·    November 2, 2020

The USDJPY is hovering above a critical support level ahead of the US elections this week.

I’ve discussed the significance of the 104.20 support area a few times in recent weeks.

We also caught the recent breakdown from a small rising wedge on October 12th with a target of 104.20.

That 150 pip target was reached 12 days later.

So where to from here?

As long as the 106.50 area is serving as resistance on a monthly closing basis, I like USDJPY lower.

USDJPY symmetrical triangle on the monthly chart
USDJPY monthly time frame

Notice how July was the first month to close beyond the symmetrical triangle.

Furthermore, USDJPY continues to carve lower highs.

This has been a pattern since February.

A series of lower highs into a critical support area like 104.20 usually suggests an imminent break lower.

But as I’ve stated recently, it’s going to take a daily close below 104.20 to expose the 101.00 region.

Alternatively, if USDJPY takes out the recent high near 106.00, it would indicate a turn higher for the pair.

Either way, I won’t be doing anything here until the dust settles following the November 3rd US elections.

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USDJPY daily downtrend
USDJPY daily time frame

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  1. Thanks Justin for your analysis , I managed to book +150 pips on this pair due to your analysis .I just want to say we do appreciate your work Sir keep it up and God bless you. I’m also not trading US elections.

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