USD/JPY firmer as last US debate gets underway, 5-DMA closer

The offered tone behind the Japanese yen keeps growing bigger, as the last US presidential debate gets underway, pushing USD/JPY further northwards in a bid to regain 5-DMA placed at 103.78.

USD/JPY benefits from risk-on

Risk-on theme persists in Asia as the third and last US election debate begins today, with Clinton still looking stronger versus Trump, which diminishes the safe-haven bids for the yen and drives the spot higher.

Moreover, a minor-recovery seen in the shorter-duration US treasury yields also helps the upside in the US dollar against its Japanese counterpart. The USD/JPY pair is seen last exchanging hands at 103.61, flirting with daily highs of 103.67, up +0.14% on the day.

Later today, all eyes will remain on the ECB policy decision, which will have a major impact on the USD moves, while the US jobless claims, Philly Fed Manufacturing index and existing home sales data will be closely eyed for further momentum.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 103.78/81 (5 & 10-DMA). A break above the last, the major could test 104.50 (psychological levels) and 104.63 (3-month high) beyond the last. While to the downside, the immediate support is seen at 103.00 (key support) next at 102.87 (20-DMA) and below that at 102.56 (100-DMA).