USD/JPY: toppy on continued failures at 104.50/80 area?

USD/JPY is mixed in the Tokyo open, bulls trying to make a break away from the 104.50 point while bears hold the fort in an otherwise subdued market.

Wall Street: mixed on bizarre decoupling intermarket

Wall Street was mixed as well while the greenback was softer and the DXY unable to convince back towards the nine-month highs that we saw over the 99 handle earlier in recent sessions. There were yet again headlines in respect to the BoJ's inflation target and how the Central Bank are pushing back the time scale to achieve the 2% target, but, again there was very little reaction in the Yen, since the BoJ are so far off from target that it is rather obvious to markets that the time scale will be pushed back. Meanwhile we will get the COI date for Japan a the end of the week as we move towards Nov, the BoJ, Fed, nonfarm payrolls and of course the US elections on the 8th Nov where polls continue to favour a Clinton victory. The yen will, however, be a favoured spot in times of uncertainty.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that technically, and in the short term, the outlook is bullish, given that in the 1 hour chart, buying interest has surged around the 100 SMA, while technical indicators have retreated from near overbought levels, but lost bearish strength within positive territory. "In the 4 hours chart, the 100 SMA maintains its bullish slope below the current level, currently around 103.95, while technical indicators have also lost directional strength, but remain within positive territory. An upward acceleration beyond 104.60 should send the pair towards 105.00 and beyond, although the pair is expected to remain within tight intraday ranges for the rest of the week."