USD/JPY breaks below 61.8% Fibo on US election-led caution

The Dollar-Yen pair snapped a two-day winning streak even though the Asian equities trade on the front foot.

Rejected at 104.63

The spot was rejected at a high of 104.63 on Monday, following which the prices started losing height. Moreover, caution ahead of the US elections is keeping the Japanese Yen bid in Asia.

At the time of writing, the currency pair was trading just below 104.39 (61.8% of Oct 28 high to Nov 03 low). Meanwhile, most major equity markets in Asia were up around 0.20%.

USD/JPY Technical Levels

A drop below 10-DMA of 104.17 would shift risk in favor of a drop to 5-DMA level of 103.65. A violation there would result in a gap filling exercise to 102.83 (Friday’s high). On the other hand, a breach of resistance at 104.39 (61.8% Fibo) would expose 104.63 (yesterday’s high) and 105.00 (zero levels).